NYT: Ukraine loses key resources vital to US deal

Russian forces have taken control of a strategic lithium deposit in Ukraine’s Donetsk region, dealing a blow to Kyiv’s economic prospects and its recently signed mineral cooperation deal with the US. 

The deposit, located near the village of Shevchenko, was captured as part of Moscow’s summer offensive, which has steadily advanced across eastern Ukraine, Caliber.Az reports via the New York Times.

Though the site spans just 100 acres, analysts considered it one of Ukraine’s most valuable lithium reserves due to its high-quality spodumene ore—a critical component in electric vehicle batteries and other advanced technologies.

The US, which classifies lithium as essential to national security, had hoped to access Ukraine’s reserves through a new bilateral agreement. Signed under the Trump administration, the deal gives US companies priority investment rights in Ukrainian mineral extraction projects. However, the fall of the Shevchenko site underscores the vulnerability of the arrangement.

"If Russian troops go further, capture more and more territory, they will control more and more mineral deposits," said Mykhailo Zhernov, director of Critical Metals Corp, a US firm formerly licensed to exploit the deposit. “It’s an issue for this deal.” 

Ukrainian Economy Minister Yuliia Svyrydenko, who signed the agreement, declined to comment. Still, Kyiv is pressing forward with plans to open another major lithium deposit, the Dobra field, to private investment. Despite investor interest, analysts warn the US-Ukraine minerals partnership faces significant obstacles—including licensing complexities, outdated surveys, and the ongoing war. 

With Russia already controlling major reserves of titanium, manganese, and coal, its continued advance threatens even more of Ukraine’s resource base. Meanwhile, Russian officials, including Kremlin-appointed Vladimir Ezhikov, have signaled strong interest in developing the seized lithium assets.

By Naila Huseynova