Ukrainian President Volodymyr Zelenskyy has reportedly rejected an initial proposal by the United States to secure 50% ownership of Ukraine’s critical minerals as part of a deal for continued military and economic aid in its ongoing war with Russia. According to three sources cited by Reuters, the US made the offer, which Zelenskyy did not outright dismiss but stated lacked the necessary security provisions required by Kyiv.
Critical minerals, which include metals like cobalt, copper, lithium, and nickel, are essential for producing hi-tech products, green energy technologies, consumer electronics, artificial intelligence infrastructure, and weapons. These materials are in high demand due to the global push for energy transition and climate change mitigation. The International Energy Agency (IEA)estimates that the market for these minerals reached £320 billion in 2022, with demand expected to more than double by 2030 if countries meet their clean energy pledges.
The term critical minerals is politically defined, with different countries prioritizing materials based on their national security, economic, and geopolitical goals. In 2022, the US Geological Survey (USGS) identified 50 minerals, including aluminium, zirconium, arsenic, beryllium, cobalt, lithium, graphite, indium, and tellurium, as vital for renewable energy, defense, and infrastructure development.
The US proposal highlights the growing geopolitical competition for access to these resources, which are crucial for technological advancement and military capabilities.
