Updated on: May 2, 2025 / 7:02 AM EDT / CBS News
The recent economic investment agreement between the U.S. and Ukraine grants the U.S. access to Ukrainian minerals, potentially bolstering Ukraine's defense against Russia and addressing America's trade war with China.
The deal, described as an equal partnership by Ukraine's economic development minister, involves the development of mineral, oil, and gas projects. The U.S. will offer financial or military assistance, while Ukraine will share royalties from future licenses.
This agreement is crucial as China restricts rare earth exports, prompting the U.S. to seek alternative sources like Ukraine. The deal covers 55 minerals, including rare earth elements, titanium, lithium, and uranium.
Experts believe Ukraine's workforce and metallurgical expertise make it a promising source for rare earth minerals. The deal excludes revenue-generating resources, focusing on new American investments for profits.
With China's dominance in rare earths and critical minerals, the U.S.-Ukraine deal aims to reduce dependence on China. Ukraine's reserves, including cobalt and nickel, contribute to global mineral resources.
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