Highlights

• Bloomberg columnist Javier Blas debunks Trump's claim of Ukraine's rare earth element wealth.
• Blas estimates the total potential strategic metal revenue in Ukraine at $775bn.
• Ukraine has strategic minerals like lithium, graphite, and titanium.
• Ukraine lacks significant rare earth element deposits.
• The real global challenge lies in China's dominance of rare earth processing, not Ukraine's limited mineral resources.

According to Bloomberg (opens in a new tab) Opinion columnist Javier Blas, US President Donald Trump’s proposed $500bn deal to control Ukraine’s so-called rare earth metals wealth is built on a fundamental misunderstanding. Blas argues that Ukraine, while rich in strategically important minerals such as lithium, graphite, titanium, and copper, has almost no deposits of genuine rare earth metals (the 17 elements critical for modern electronics). Instead of trillions of dollars’ worth of rare earth elements, Ukraine’s resources are valued at far less—estimated at a maximum of $775bn in total potential revenue from strategic metals, with current production barely exceeding $100mn in exports for 2024.

Blas dismantles Trump’s claims by highlighting historical miscalculations—similar to overestimated mineral wealth in Afghanistan—and underscores that even with hypothetical full exploitation, the revenue streams would take centuries to reach the astronomical figures demanded. As Rare Earth Exchanges continues to highlight, the reporter notes that the focus on demanding 50% of future revenues distracts from the massive investment required to develop the mining and processing infrastructure necessary to transform Ukraine’s latent mineral potential into real economic output.  

Absolutely! Costs are key in any economic consideration, and those associated with any extraction in Ukraine would be massive.

Blas questions why policymakers persist in using outdated and simplistic tariff tactics when modern trade demands sophisticated deal-making and points out that the real strategic challenge lies in China’s dominance of the rare earth processing market, not in Ukraine’s limited deposits and all the fuss currently ongoing.  Unless, of course, it serves as a cover.

While Blas’s critique is incisive, the article leaves unanswered questions about the long-term implications of China’s state-backed industrial policies and the operational challenges Ukraine faces in mobilizing its resource base. In sum, Trump’s vision of a lucrative mineral windfall from Ukraine appears to be a mirage—an unrealistic fantasy that ignores both the true value of Ukraine’s deposits and the complex global dynamics at play. But talk of such topic makes for good sound bites, and fictitious value extraction by the President for the American people.

In the meantime, the real problem, across the Pacific Ocean, goes unaddressed.