Ukraine's Rare Earth Deposits Are Small... So Why Is Trump Eyeing Them? [Tech Talk]

Ukraine Rich in Lanthanide Elements
From Neodymium Magnets Dominated by China
to Raw Materials for Superconductors

U.S. President Donald Trump is demanding the signing of a 'mineral agreement' with Ukraine in exchange for security costs. Since the breakdown of the White House meeting between President Trump and Ukrainian President Volodymyr Zelensky on the 28th of last month, the pressure has intensified by cutting off weapons and intelligence support to the Ukrainian military. The Trump administration estimates Ukraine's rare earth deposits to be worth about $500 billion (approximately 720 trillion won).

Ukrainian President Volodymyr Zelensky and U.S. President Donald Trump are seen raising their voices and clashing during a meeting on the 28th of last month (local time). Photo by AFP Yonhap News

Ukraine is known to contain about 3% of the world's rare earth elements (according to the Ukrainian Geological Science Institute). Although the total value is astronomical, it is much smaller than the deposits of other major rare earth countries such as China, Australia, and even the United States. The reason Ukraine's mineral resources attract the interest of major powers is not the scale but the type of minerals.

Ukraine's Land Contains 'Neodymium,' an Essential Material for Advanced Industries

Rare earth elements collectively refer to 17 elements, including the 15 lanthanide series elements (La~Lu) on the periodic table, as well as scandium (Sc) and yttrium (Y). They are distributed worldwide, but their total quantity is scarce compared to other minerals, hence the name rare earth elements. It is estimated that significant minerals containing lanthanide elements are deposited in Ukraine's territory and Russian-occupied areas.

The lanthanide rare earths include 'neodymium,' one of the most important mineral resources in advanced industries. Processing this mineral produces neodymium permanent magnets, which are essential components used in electric vehicle motors, wind turbine generators, and numerous military equipment. China is the world's largest producer of neodymium. The Institute of Electrical and Electronics Engineers (IEEE) estimates that 85% of the neodymium permanent magnets distributed worldwide are of Chinese origin.

In the U.S., the federally supported rare earth company MP Materials is conducting a domestic production project for neodymium magnets at about 2,000 tons per year, but this is insufficient to overcome China's dominance, which reaches around 30,000 tons annually. If the development of neodymium mines in Ukraine becomes possible, it could create another alternative to counter China's rare earth dominance.

With support from the U.S. federal government, MP Materials quarry is the only facility in the United States capable of independently producing neodymium permanent magnets. MP Materials official website

Additionally, Ukraine is rich in cobalt, graphite, copper, and lithium deposits. Although these four minerals are not rare earth elements, they are classified as 'critical minerals,' essential raw materials for the eco-friendly energy transition. Cobalt is used in making permanent magnets like neodymium, graphite and lithium are key materials for secondary batteries, and copper is indispensable for manufacturing electrical wires.

Laser and Superconductor Materials Also in Ukraine

Moreover, Ukraine contains other critical rare earth elements. As mentioned earlier, rare earths belong to group 3 of the periodic table, but Ukraine's rare earth deposits include not only lanthanides but also a large amount of yttrium group elements. While lanthanum is an important mineral for modern advanced technology industries, yttrium is a core material for future scientific technologies.

Yttrium-Aluminum-Garnet (YAG) crystal that amplifies the light of a solid-state laser. Coherent website

Yttrium is a component of LED light emission and also a material for lasers. Industrial lasers, semiconductor process lasers, and laser interception weapons being developed by advanced countries such as the U.S. and the U.K. are called 'solid-state lasers,' and most of these lasers use yttrium-aluminum-garnet (YAG) synthetic crystals as a key component. Also, 'high-temperature superconductors (HTS),' which activate at temperatures as low as minus 200 degrees Celsius, are manufactured from oxides synthesized from yttrium, barium, and copper.

Not Only the U.S. but Other Major Powers Are Also Moving

In other words, although Ukraine's mineral deposits are smaller than those of rare earth powerhouses, their composition is extremely valuable. They contain everything from neodymium, which China effectively controls, to critical minerals for eco-friendly industries and materials for advanced scientific industries.

For this reason, other major powers are also showing movements to leverage or jointly develop Ukraine's resources. Russian President Vladimir Putin proposed on the 25th of last month that Russia could sell rare earths from Ukrainian territories occupied by Russia to the U.S.

The European Union (EU), a key ally of Ukraine, is also reportedly considering proposing a mineral development agreement with Ukraine. According to AFP and other sources, a senior EU diplomatic official emphasized, "Ukraine can supply 21 of the 30 critical minerals needed by Europe," and added, "We can establish a win-win partnership."