Despite its wealth of critical minerals, Ukraine faces obstacles in accessing and exploiting these resources.
Ukraine is home to a significant portion of the world’s mineral wealth, holding around 5% of global reserves. These include critical materials such as manganese, iron, graphite, and titanium—elements essential for various industries, including energy and technology. However, many of these minerals remain untapped or are difficult to access, presenting challenges for exploitation, according to experts.
In the 2024 World Mining Data report, Ukraine ranked 40th globally among mineral-producing nations. It was the 10th largest producer of iron in 2022, and continues to attract attention from global powers, including the United States, due to its vast mineral resources. Ukraine’s mineral deposits were also highlighted in a 2023 study by the Bureau of Geological and Mining Research (BRGM), which identified over 100 different mineral resources including iron, uranium, and manganese.
Strategic and Critical Minerals
Ukraine is particularly significant as a global supplier of titanium, manganese, and graphite. These are deemed critical minerals due to their importance in sectors like battery production, which is essential for renewable energy and electric vehicles. In fact, Ukraine contributes 20% of the world’s estimated graphite resources, a crucial element in electric batteries. Furthermore, the country is regarded as one of Europe’s leaders in the potential for lithium extraction, another essential mineral for battery technology.
Despite these resources, Ukraine faces significant challenges. The government has claimed that it has one of Europe’s largest lithium deposits, but extraction has yet to begin. Similarly, Ukraine possesses large quantities of rare earth elements (REEs), which are vital for technologies such as electric motors, wind turbines, and drones. However, REEs are not yet mined commercially in Ukraine, despite the presence of several deposits, including one in the Novopoltavske region—one of the world’s largest.
While Ukraine is aware of its rare earth resources, the US Geological Survey points out that these deposits are not currently being mined, and there are no known plans to begin extraction. Furthermore, some of the elements identified by the Ukrainian government as rare earths are not actually considered to be within the critical 17-metal category defined internationally.
Obstacles to Exploitation
The primary issue hindering exploitation is the accessibility and concentration of these resources. Experts caution that the deposits may not be rich enough or easily reachable to justify commercial extraction. According to S&P Global, some of the projections about Ukraine’s rare earths are based on outdated Soviet-era data, and extraction may not be economically viable due to the challenging conditions.
Moreover, some deposits, particularly in contested regions, remain out of reach due to the ongoing conflict with Russia. Despite these challenges, Ukraine’s vast mineral resources continue to draw interest, with potential investment required to unlock their value and support the global transition to green technologies.
