Russian offensive strips Ukraine of rare earth metals offered to the US in resource deal – NYT

The ongoing russian offensive in the east of Ukraine is stripping it of a key lithium deposit that the US was offered access to under a rare earths deal, The New York Times (NYT) reported.

The deposit, located near the village of Shevchenko in western Donetsk Region, was reportedly seized recently, according to battlefield maps from independent groups that track russian advances using geolocated combat footage as part of russia's summer offensive.

"Though relatively small — it covers only 100 acres — the deposit was seen by industry analysts as one of Ukraine's most valuable because of its rich concentration of lithium, a mineral essential for manufacturing advanced technologies such as electric batteries. The United States has designated lithium as critical to its economy and national security," the article said.

The Trump administration has set itself the goal of tapping Ukraine's vast lithium reserves, some of the largest in Europe, through a recently signed historic deal that gives it priority access to the country's mineral wealth.

But the seizure of the Shevchenko deposit highlights a fundamental problem for the deal. The more territory russian forces seize in Ukraine, the less resources Kyiv has to offer Washington.

"If Russian forces go further, capture more and more territory, they will control more and more mineral deposits," said Mykhailo Zhernov, director of Critical Metals Corp, an American company that used to hold a license to exploit the Shevchenko deposit. "It's an issue for this deal."

It also notes that during negotiations for the operation, Ukrainian officials sought to secure extensive US military support, arguing that it was in the US economic interest to help Ukraine push back russian forces and retain control of the valuable reserves. But Washington has consistently refused to tie the minerals deal to additional military support.

The publication notes that Ukraine still has two other large lithium deposits available for development, both located in the central part of the country, far beyond the current front lines. But the Shevchenko deposit stood out for the quality of its ore, which consists mainly of spodumene. This mineral contains high levels of lithium, which has proven to be an important factor in Australia's thriving mining sector.

As the Ukrainian News agency earlier reported, russian occupation forces captured the village of Shevchenko in the Donetsk Region and took control of one of the most promising lithium deposits in Ukraine and one of the largest in Europe.

Earlier, the President of the United States of America, Donald Trump, emphasized that he had concluded an economic agreement with Ukraine, which provides access to land resources, and this agreement is of great importance for the economy and security of the United States.

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