Ukraine is home to a vast array of critical minerals with an estimated value in excess of US$26 trillion, making it a significant player in the global supply chain.

The country boasts approximately 20,000 mineral deposits, covering 116 types of minerals. Key resources include titanium, lithium, beryllium, manganese, gallium, uranium, zirconium, graphite, apatite, fluorite, and nickel¹. Notably, Ukraine holds the largest titanium reserves in Europe, accounting for 7 percent of the world’s reserves, as well as almost 500,000 tons of lithium, a valuable strategic element that can contribute in meeting the global demand for batteries².

Strategic importance

The strategic importance of Ukraine’s critical minerals cannot be overstated. These resources are essential for industries such as defense, high tech, aerospace, and green energy. The global demand for critical minerals is expected to surge, driven by the transition to electric vehicles and renewable energy technologies.

Ukraine’s potential to supply these minerals is crucial for countries looking to diversify their supply chains and reduce dependency on countries such as China and other non-democratic regimes. The European Union (EU) and the United States have adopted strategies to leverage Ukraine’s resources to bolster their supply chains, support green transitions, and aid Ukraine’s post-war recovery.

Government initiatives to attract investment

The Ukrainian government has been proactive in attracting foreign investment to develop its critical mineral resources. In recent years, Ukraine has signed strategic partnerships and held investment forums to showcase its mining opportunities. For instance, the EU-Ukrainian Strategic Partnership on Critical Minerals, signed in July 2021, aims to bridge the mining gap in Europe by developing 100 projects focused on 10 critical raw materials³.

Ukraine has also begun auctioning exploration permits for minerals such as lithium, copper, cobalt and nickel, offering lucrative investment opportunities. These efforts are part of a broader strategy to drive Europe’s green transition and support Ukraine’s economic recovery.

The state-owned United Mining and Chemical Company, one of the world’s largest producers of titanium raw materials, will be auctioned for privatization on October 9 with a starting bid of UAH 3.9 billion (approx. US$95 million). The company has a 4 percent share of the world market and its production volume places it among the top 10 producers in the world.

US-Ukraine cooperation

Ukraine aims to leverage its rich mineral resources to accelerate the green transition and enhance regional security. In this regard, cooperation between Ukraine and the United States in the critical materials sector has been a focal point of recent discussions. During a meeting on August 12 between the two governments, they discussed joint investment projects and the use of frozen Russian assets to support Ukraine’s economy and reconstruction efforts. In particular, the Ukrainian government is keen to encourage American businesses to invest in its mining and processing industries.

This collaboration aims to deepen ties and leverage Ukraine’s rich mineral resources to support the production of semiconductors and high-tech products.

Environmental considerations

While the development of critical minerals presents significant economic opportunities, it also poses environmental risks. The rush to exploit these resources must be balanced with sustainable practices to mitigate environmental impacts. Ukraine’s government and international partners are aware of these challenges and are working towards environmentally responsible mining practices.

Ukraine’s critical minerals are a strategic asset with the potential to reshape global supply chains. The country’s vast mineral reserves, coupled with proactive government initiatives and international cooperation, position Ukraine as a key player in the global market for critical materials. As the world transitions to greener technologies, Ukraine’s role in supplying essential minerals will become increasingly vital.

1. The future of critical raw materials in Ukraine and the world | World Economic Forum.
2. The future of critical raw materials in Ukraine and the world | World Economic Forum.
3. EU and Ukraine kick-start strategic partnership on raw materials - European Commission.