President Donald Trump has struck a minerals deal with Ukraine, securing access to valuable rare earth elements critical for U.S. technology and defense. In return, Ukraine will receive funds for reconstruction, with half of future profits from mining ventures dedicated to rebuilding the war-torn nation.
[Editor’s note- this article has been updated to include the withdrawal of the deal after a tense exchange between Trump, JD Vance and Zelensky]
UPDATE:
“I can’t make a deal with him,” Trump told the media gathered in his office.
Trump’s Strategy: Speaking to reporters at the White House today, Trump explained the financial dynamics of the agreement. “Well, we don’t know exactly how much because we’re going to be putting some money in a fund that we’re going to get from the Rare Earth that we’re going to be taking—sharing in terms of revenue,” Trump said. “A lot of money will be made from the sale and from the use of Rare Earth.”
Ukraine’s Mineral Wealth: The deal centers on Ukraine’s rich deposits of rare earth minerals, which are essential for AI, military weapons, and computing. “We have a lot of oil and gas, but we don’t have Rare Earth,” Trump noted. “They have among the best in the world.”
A Win for U.S. Manufacturing: The agreement aims to reduce American dependence on China for key minerals. Trump emphasized that the raw materials would support domestic production. “For all of the things we do, including AI and weapons in the military… this has just about every component we need,” he said.
Security Implications: While Ukraine pushed for security guarantees, the deal only states that the U.S. “supports Ukraine’s efforts” in obtaining them. However, Trump’s team argues that American investment in Ukraine’s mining industry is itself a form of long-term security assurance.
Challenges Ahead: Mining and refining infrastructure in Ukraine remains underdeveloped. Some key mineral sites are near Russian-occupied areas according to media reports, raising concerns about long-term viability. Still, the deal positions the U.S. for future resource security, shifting dependence away from China and strengthening American industry.
Trump’s Bottom Line: The president framed the agreement as a smart financial and strategic move for America. “Something that just worked out really well,” he concluded.
Watch Trump’s Friday appearance at the White House with Zelensky:
What is “Rare Earth”?
Rare earth elements (REEs) are a group of 17 metallic elements in the periodic table, including the 15 lanthanides (lanthanum through lutetium) plus scandium and yttrium. Despite their name, they are not necessarily “rare” but are difficult to extract in economically viable concentrations.
Key Facts About Rare Earths:
- Vital for Modern Technology: REEs are essential in electronics, renewable energy, defense, and medical devices.
- Magnetic & Conductive Properties: Used in powerful magnets, batteries, and semiconductors.
- China’s Dominance: China controls a significant portion of the global rare earth supply chain.
- Hard to Process: Mining and refining REEs involve complex and environmentally challenging processes.
Common Uses of Rare Earth Elements:
We will update this story when new details emerge.