Kyiv chooses Trump-linked consortium to develop key lithium deposit

Ukraine awarded a bid to develop a major state-owned lithium deposit to a consortium that includes billionaire Ronald S. Lauder, a longtime friend of President Donald Trump, as Kyiv seeks to attract investment amid ongoing conflict with Russia.

The decision was made by a Ukrainian government commission, according to two commission members who spoke on condition of anonymity due to the sensitive nature of the vote. While the deal still requires formal approval from Ukraine’s cabinet, officials said it is essentially sealed, The New York Times reports. 

The winning consortium also includes TechMet, an energy firm partly owned by a US government investment agency created during Trump’s first term. The two commission members said the consortium outpaced competitors by meeting most bidding criteria, dismissing suggestions of favoritism. Nonetheless, Kyiv’s ties to investors connected to Trump appear aimed at strengthening its position with the American leader as it seeks US backing in peace talks with Russia.

Since Trump returned to power, US-Ukrainian relations have taken on a mercantile character, with Washington halting most military aid and focusing on potential investment and weapons deals. A draft peace plan under discussion includes a postwar reconstruction plan valued at $800 billion, which President Volodymyr Zelenskyy has said would create opportunities for American businesses. “There’s a lot of wealth to be had,” Trump said last month while hosting Zelenskyy at Mar-a-Lago.

Ukraine has also signaled openness to closer business cooperation. Last month, Patrick Fragman, former CEO of US nuclear company Westinghouse, was appointed to the supervisory board of state-owned Energoatom, a move widely seen as signaling Kyiv’s willingness to cooperate with American interests.

The Dobra lithium field, one of Ukraine’s largest reserves, will be developed under a production-sharing contract. Half of the government’s revenue from the site will go to a joint US-Ukraine investment fund, which also gives preference to US investors. The consortium’s total investment remains unclear but exceeds the tender’s minimum of $179 million. Experts note that mining lithium can take 15 years from survey to production, a timeline extending beyond Trump’s current term.

By Vafa Guliyeva