The President Donald Trump is located on the Meeting of Ukrainian counterparts of Volodymyr Zelenia in Washington, DC, on Friday, to sign a new critical mineral.
The agreement will see Ukraine and the United States jointly develop Ukrainian huge reserves of strategic materials, with 50 percent of income from critical minerals, oil, natural gas and other resources flowing into the US Fund.
While Trump dealt as repayment of the Army and Humanitarian aid provided by Ukraine from 2022. Years, Zelensky pushed on that idea, saying that Kyiv would not accept even 10 centers of debt repayments. “
American eyes in Ukraine resource wealth
The United States largely depends on the import of materials that are essential for defense, the energy and high-tech industry, making a constant supply of a friendly partner, such as Ukraine’s attractive alternative to China. Washington has long seen Chinese dominance on global minerals as a national security threat and in recent years worked on diversifying his supply chains.
China consists of over 60 percent of the global mining of the Earth Earth and almost 90 percent of the rarely processing of the country, which gave him a crowd on the supply chains. The United States is especially interested in securing the alternative necessities of lithium, graffiti and uranium, critical materials for EV batteries, military defense platforms and nuclear energy.
Between 2017. and 2020, USA Finished third your graphite from China.
It is believed that Ukraine considers that about 45,600 tons of reserves of uranium and about a billion tons of graffiti, which represents 20 percent of world graphic reserves. But industry experts warn that taping in these resources will not be easy, in some cases it may not be sustainable.
Experts warn of great obstacles
Despite Ukraine’s unused resource potential, mining experts and policies have increased doubts in whether Ukrainians actually bring American expectations.
For one, reliable geological data is missing. The latest comprehensive estimates of rare earthly elements of the Earth in Ukraine were conducted before decades by the Soviet Union, using obsolete survey methods. This is a serious risk for investors, because deposits may not be as commercially sustainable as hope.
Evgeniy Maloletka / Associated Press
“This is a risk for mining companies that can end up disappointed after investing millions of dollars in less inspiring deposits”, the Center for Strategic and International Studies (CSIS) noticed in the article on Thursday.
Then there is a question of infrastructure. The three-year war was relaxed by Ukraine’s electricity network, leaving only a third of its improvement energy intact. Mineral mining and refining is very energy intensive, which means that any expansion of production will require mass investment in the reconstruction of electric infrastructure.
Security is another big concern. Great regions of rich resources in Ukraine are either under Russian occupations or within the range of Russian missile attacks, which makes it difficult to attract private investments needed for the development of these industries.
The CSIS adopted these issues: “Even in the long run, the success of the bilateral agreement is eventually hinged by Ukraine to attract private investment in their mineral resources. In Ukraine, they can command private companies as China and Russia can with their state-owned enterprises.”
China is held on the market and US efforts to get rid of
The United States spent years spent working on secure critical mineral partnerships with allies to reduce Chinese dominance over global supply chain. Australia, Canada and several African peoples are key players in this strategy.
China does not idly stand. Chinese companies have aggressively expanded their presence in Africa, investing in mineral investment production over the continent. Beijing is now controlling about 80 percent of critical mineral production in the Democratic Republic of the Congo (DRC), according to the US International Financing Company in the USA.
China also withdrew the graffiti market, producing over 70 percent of the world supply – material key for batteries in helicopters, missiles and other defense platforms.
While the mineral wealth of Ukraine seems promising on paper, experts warn that they are unlikely to soon transfer global supply chains.
What happens next?
The Trump Administration Agreement with Kiev is expected to move, but the issues remain on how much Ukraine can soon reduce production – if at all.
CSIS said: “While government and government agreements can be useful to the private sector and incentive incidental inspection, the loss of key infrastructure (during the war) and the current security risks endanger the sustainability of investment in long-term minerals.”
Despite Trump pushing to Ukraine to help pay out the critical minerals, the reality is that even under the ideal conditions could take years – if not decades – for Ukraine to market chinese dominion on the market.
2025-02-28 11:00:00
