US-Ukraine minerals deal gains momentum with lithium field initiative

Ukraine has taken its first concrete step toward implementing the minerals agreement it signed with the United States more than a month ago, aiming to demonstrate to the Trump administration that the deal can yield rapid results.

On June 16, the Ukrainian government approved initial measures to open one of the country’s largest lithium deposits, the Dobra field in central Ukraine, to private investors, according to two senior officials familiar with the decision, Caliber.Az reports, referring to the New York Times.

The approval includes drafting recommendations for launching a bidding process, making it the first potential project under the new U.S.-Ukraine mineral partnership.

A likely contender for the Dobra project is a consortium that includes TechMet — an energy investment firm partially owned by the U.S. government — and billionaire Ronald S. Lauder, a close associate of President Trump. The group has been lobbying Kyiv to open the deposit for bidding since late 2023.

The broader agreement between Washington and Kyiv stipulates that half of Ukraine’s state revenues from mineral extraction will go to a joint U.S.-Ukraine investment fund. That fund would reinvest in Ukraine’s economy while granting the U.S. a share of returns — a structure Trump has promoted as a form of repayment for American aid during the war.

Though the government has not made a final decision to open bidding, and the drafting process is expected to take several weeks, the June 16 announcement is widely seen as a political signal aimed at reassuring the White House, especially as peace talks with Russia remain stalled and U.S. engagement appears increasingly uncertain.

Ukraine’s economy minister, Yulia Svyrydenko, led a delegation to Washington earlier this month to promote investment in the country's strategic deposits of lithium, graphite, and titanium. “These are exactly the kinds of strategic initiatives where U.S.-Ukraine cooperation can deliver mutual benefit,” she said following a meeting with U.S. Treasury Secretary Scott Bessent.

The United States has shown growing interest in Ukraine’s mineral reserves as part of efforts to reduce dependence on China, which dominates global supply chains for critical materials. U.S. officials believe Ukraine could offer a long-term alternative.

According to Ukrainian authorities, the country holds reserves of nearly half of the 50 critical minerals identified by the United States for economic and national security needs. The Kyiv School of Economics reports that Ukraine possesses the largest titanium deposits in Europe and approximately one-third of its lithium reserves.

Still, analysts caution that many projects under the minerals deal will take years — potentially a decade or more — to become operational. As such, the joint investment fund may not see significant profits for years, likely well beyond Trump’s current term in office.

Several obstacles could also delay development: outdated geological surveys, damaged infrastructure, and the inherent risks of operating in a war-torn country. Corruption concerns also loom large, particularly around the sale of state-owned assets.

Brian Menell, CEO of TechMet, underscored the need for a transparent process, saying last week, “We are hopeful that Ukraine will move ahead with an open, fair and transparent process.”

To address investor concerns, Menell and others are advocating for production sharing agreements — long-term contracts that allow firms to extract minerals in exchange for sharing output with the government. These contracts typically span decades and include tax breaks and international dispute resolution mechanisms. The Dobra lithium project is being prepared under such a framework.

In a bid to speed up returns, Svyrydenko has also proposed expanding the joint investment fund to include Ukraine’s rapidly growing defence sector. The country is producing drones, artillery shells, and cannons at low cost but lacks sufficient capital for scaling. Natalia Shapoval, head of the Kyiv School of Economics Institute, said American companies could help fill that gap.

“It’s about making the fund more attractive for the United States,” Shapoval said. “Where do you invest money to get a return today in Ukraine? In defence.”

Meanwhile, Ukraine and Russia remain locked in limited engagement, exchanging prisoners of war and repatriating the bodies of fallen soldiers. On June 16, Kyiv reported receiving the final group of remains under a recent agreement reached in Istanbul, bringing the total to roughly 6,000.

By Tamilla Hasanova