Mainstream Media Misses Much Important Information in the American Bid to Secure $500b worth of ‘Rare Earths’

Highlights

• U.S. President Donald Trump demands $500 billion in Ukrainian critical minerals as compensation for military and financial support.
• Russia currently controls 50-100% of Ukraine’s key mineral reserves, complicating potential mineral exchange agreements.
• The proposed deal involves critical minerals like lithium and titanium, which are essential for green energy and defense technologies.

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As covered by a Politico (opens in a new tab) article today (Feb 11, 2025) by Seb Starcevic published, U.S. President Donald Trump has proposed that Ukraine provide the United States with $500 billion worth of rare earth minerals as compensation for the extensive financial and military support the U.S. has extended to Ukraine during its conflict with Russia. Trump emphasized the necessity of receiving tangible returns for the aid provided, stating, “We have to get something. We can’t continue to pay this money.” Ukrainian President Volodymyr Zelenskyy has indicated a willingness to allow the U.S. to develop Ukraine’s natural resources, viewing it as a strategy to maintain American support.

Trump has certainly expressed the American desire to compete against China in a race to access rare earth and critical mineral deposits. Although often both the American president and mainstream media improperly use the terms interchangeably. Important what much of the American political establishment does not acknowledge, at least publicly, is that accessing deposits is but one stop in the process of owning the rare earth or critical mineral supply chain. The West must also ramp up and master separation, processing and refining as well as value-added manufacturing of magnets and myriad other products.

The Politico reporter highlights Ukraine’s substantial deposits of critical minerals such as lithium and titanium and points out that many of these resources are in territories currently under Russian control. This geopolitical reality complicates the potential for the U.S. to access these minerals, as the ongoing conflict has made significant portions of Ukraine’s mineral wealth inaccessible.

Rare Earth Exchanges suggests that the article does not delve deeply into the specific distribution of these critical mineral deposits or the extent of Russian control over them. For instance, it is estimated that by the end of 2022, Russia will control between 50% and 100% of Ukraine’s reserves of lithium, tantalum, cesium, and strontium—metals essential for green energy technologies and defense industries, reports CIRSD (opens in a new tab).

Russia’s significant control over Ukraine’s critical mineral resources poses substantial challenges to any agreements between the U.S. and Ukraine regarding the exploitation of these minerals. It also raises serious questions about what Ukraine’s head touts as resources and assets for deal-making.

Rare Earth Exchanges also points out that while the recent Politico piece refers to these resources as “rare earth” minerals, it is important to note again that Ukraine’s wealth primarily lies in critical minerals like lithium and titanium, which, although essential for modern technologies, are distinct from rare earth elements.

This distinction is crucial, as the term “rare earths” refers to a specific group of 17 elements that are vital for various high-tech applications. In summary, while the Politico article addresses the proposed exchange of U.S. aid for access to Ukraine’s mineral resources, it does not fully explore the complexities arising from the geographical distribution of these resources and the significant control exerted by Russian forces over key mineral-rich territories.