Despite the unsuccessful meeting between Donald Trump and Volodymyr Zelensky in the Oval Office, the United States is extremely interested in signing a deal for access to Ukrainian rare earth metals. This topic has become strategically important as control over critically important resources can impact not only the US economy but also the stability of the dollar.
Why have rare earth metals become a geopolitical factor?
A few decades ago, key issues in world politics were control over oil, gas, and trade routes. However, now another important aspect has been added to this list – rare earth metals. They are used in electronics manufacturing, green energy, military technologies, and communication, making them highly sought after in the global market.
The US traditionally depends on the supply of these resources from China, which controls 60 to 85% of the global rare earth elements market. However, Washington aims to reduce dependence on Beijing and find alternative sources. This is why the US attention has turned to Ukraine.
Ukraine as a strategic partner in the field of rare earth metals
Although official extraction of rare earth metals is not currently taking place in Ukraine, according to the Kyiv Institute of Geology, the country has significant deposits of elements such as lanthanum, cerium, neodymium, erbium, and yttrium. Scandium extraction also has high potential, with significant reserves concentrated in the Zhytomyr, Turchyn, Stremigorod, and Zlobychiv deposits.
Americans are considering the possibility of cooperation with Ukraine in the development of these deposits, which could be part of a major economic partnership between the countries. For Ukraine, this is a chance to receive financial and technological support, and for the US, access to strategic resources that could strengthen their economy.
How do rare earth metals affect the dollar?
Today, the dollar remains the main reserve currency in the world due to the dominance of the United States in the global economy and its influence on the oil market. However, the shift to green energy and reduced dependence on oil could threaten the stability of the American currency.
In this context, the strategic use of rare earth metals could become a new mechanism for strengthening the dollar. If the U.S. can secure stable supplies of these resources, they will gain not only an economic advantage but also the ability to control important sectors of the global industry.
The Chinese Factor: Who Wins in the Global Game?
China is the only country that has a complete production cycle of rare earth metals – from extraction to processing and creating final products. This gives it a powerful lever of influence on global markets.
The Trump administration has already tried to reduce the U.S. dependence on Chinese exports by imposing trade tariffs and developing new strategic approaches. In 2025, the issue of rare earth metals could be the basis for a new stage of economic confrontation between the U.S. and China.
Ukraine Between Two Giants: What are the Prospects?
For Ukraine, a deal with the U.S. could be an important economic step that would provide investments and technology for the extraction of rare earth metals. However, this also raises questions about possible consequences in relations with China, which remains an important trading partner.
It is obvious that the competition for rare earth elements will only intensify. They are becoming not just a resource for technologies but a strategic asset that will shape the future of the global economy and politics. The U.S. is seeking to secure stable supply, and Ukraine has the chance to play a key role in this geopolitical game.
