The governments of Ukraine and the United States are considering deeper cooperation in the critical materials sector to encourage American businesses to invest in Ukraine's mining and processing industries. This initiative was discussed during a meeting between Ukrainian Ministry of Economy officials and a US delegation on 12 August 2024.
First Deputy Minister of Economy Oleksiy Sobolev emphasized Ukraine's potential in this sector, stating, "Ukraine is one of the richest countries in Europe in terms of mineral resources. The government is interested in cooperating with the US in the field of critical materials, which can help accelerate the green transition and improve the security situation in the region."
As per Ecomonichna Pravda, Ukraine boasts deposits of 22 out of 34 minerals defined as critical by the EU. The country ranks among the top ten producers of titanium, zirconium, graphite, and manganese globally. Notably, Ukraine holds approximately 5% of the world's reserves of raw materials essential for semiconductor and high-tech production in the US and EU.
Ukraine is the world's second-largest producer of gallium after China, which recently banned the supply of this metal to the US and Germany. It also ranks fifth globally in germanium production after China, Russia, the US, and Japan.
According to the State Geological Survey, Ukraine is among the top five countries worldwide in terms of explored graphite reserves. Currently, six graphite deposits are known, but only one - part of the Zavallia deposit in the Kropyvnytskyi Oblast - is being exploited.
The meeting also touched upon the use of frozen Russian assets to benefit Ukraine. The Ukrainian government expressed gratitude to the US, G7 countries, and the EU for providing $50 billion in financial support from future revenues of frozen Russian assets. Sobolev highlighted the necessity of seizing all Russian state assets located abroad.
This potential partnership in the critical materials sector could significantly boost Ukraine's economy while providing the US with a reliable source of essential minerals, strengthening the strategic relationship between the two nations.
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