What’s so special about Ukraine’s minerals?
Ukraine is often recognised for its vast agricultural lands and industrial heritage, but beneath its surface lies one of the world's most remarkable geological formations, the “Ukrainian Shield”
Plymouth: Ukraine’s minerals have become central to global geopolitics, with the US President Donald Trump seeking a deal with Ukraine’s president Volodymyr Zelensky to access them. But what are these minerals exactly and why are they so sought after?
Ukraine is often recognised for its vast agricultural lands and industrial heritage, but beneath its surface lies one of the world’s most remarkable geological formations, the “Ukrainian Shield”.
This massive, exposed crystalline rock formed over 2.5 billion years ago, stretches across much of Ukraine. It represents one of Earth’s oldest and most stable continental blocks. The formation has undergone multiple episodes of mountain building, the formation and movement of magma and other change throughout time.
These geological processes created favourable geological conditions for forming several mineral deposits including lithium, graphite, manganese, titanium and rare earth elements. All these are now critical for modern industries and the global green energy transition. Ukraine has deposits containing 22 of 34 critical minerals identified by the European Union as essential for energy security. This positions Ukraine among the world’s most resource-rich nations.
International race
As the world races to decarbonise, demand for critical minerals is skyrocketing. Electric vehicles, wind turbines, solar panels and energy storage systems all require lithium, cobalt and rare Earth elements which Ukraine has in abundance. The price of lithium has surged from US$1,500 per tonne in the 1990s to around $20,000 per tonne in recent years. Demand is expected to increase nearly 40-fold by 2040.
According to the International Energy Agency, the number of electric vehicles is projected to exceed 125 million by 2030. Similar growth is expected for other battery metals. Each electric vehicle requires significantly more lithium than conventional electronics. For example, a Tesla Model S battery requires approximately 63kg of high-purity lithium.
Ukraine has three major lithium deposits. These include Shevchenkivske in the Donetsk region as well as Polokhivske and Stankuvatske in the centrally located Kirovograd region – all within the Ukrainian Shield. Despite the significant mineral potential, many of Ukraine’s mineral deposits have remained largely unexplored due to the war with Russia, which has disrupted mining operations and damaged infrastructure.
The Shevchenkivske lithium deposit contains high concentrations of spodumene — the primary lithium-bearing mineral used in battery production. Its reserve is estimated as 13.8 million tonnes of lithium ores. That said, extracting it requires an estimated US$10–20 million in exploration investment before mining can begin.
Meanwhile, the Polokhivske deposit at is approximately 270 thousand tons of lithium is considered one of the best lithium sites in Europe. That’s because of its favourable geological conditions, making extraction more economically viable.
But lithium represents just one element of Ukraine’s mineral resources. According to the US geological survey, Ukraine ranks globally as the third-largest producer of the mineral rutile – making up 15.7% of world’s total output. It is the sixth-largest producer of iron ore (3.2% of total output) and titanium (5.8%), as well as the seventh-largest producer of manganese ore (3.1%).
Ukraine also has Europe’s largest uranium reserves, crucial for nuclear power and weapons. It boasts significant deposits of rare earth elements, including neodymium and dysprosium, which are needed for manufacturing everything from smartphones to wind turbines and electric motors.
In addition, Ukraine is home to the world’s largest proven reserves of manganese ores. There’s approximately 2.4 billion tonnes of it concentrated primarily in the Nikopol Basin on the southern slope of the Ukrainian Shield.
The strategic significance of Ukraine’s minerals has gained recognition in international diplomacy. Recent bilateral negotiations between Ukraine and the US highlight the geopolitical importance of these resources.
A proposed minerals deal would involve Ukraine contributing 50 per cent of future proceeds from state-owned mineral resources, oil and gas and other extractable materials to a reconstruction investment fund for Ukraine’s post-war rebuilding. The fund would be jointly managed by Kyiv and Washington.
