Ukraine is preparing to develop a lithium deposit under an agreement with the US: details
19 June 2025 17:44
The head of the Office of the President of Ukraine, Andriy Yermak, has announced preparations to announce a tender for the development of the Dobra lithium deposit in Kirovohrad region. According to him, this may be the first project in cooperation with the United States, "Komersant Ukrainian" reports.
“I am glad to see that the process is underway and the results of our meetings in Washington a week ago are turning into concrete actions,”
– yermak said in a statement.
He also added that yesterday in Canada at the G7 summit, he and First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko met with U.S. Treasury Secretary Scott Bessent to work out the details of cooperation.
The historical significance of the agreement between Ukraine and the United States
Yermak attached to his post a link to a New York Times article that states that Ukraine is taking the first steps in fleshing out the agreement with the United States. Kyiv is now eager to demonstrate to the Trump administration that this agreement can bring quick and tangible results.
The article claims that on Monday, June 16, Ukraine approved the first steps toward allowing private investors to develop a large state-owned lithium deposit. Such a project would be the first to be approved under the agreement.
Details of the Dobra deposit development project
The government has agreed to start preparing recommendations for opening bids for companies to develop the Dobra lithium deposit in central Ukraine. This is one of the largest deposits of lithium in Ukraine, a mineral critical for the production of electric batteries.
Among the likely bidders is a consortium of investors that includes TechMet, an energy investment firm partially owned by the U.S. government, and Ronald S. Lauder, a billionaire and friend of President Trump. This group has long expressed interest in the Dobra field, calling on President Volodymyr Zelenskyy to open the auction in late 2023.
Terms of cooperation and financing
Under the broader deal, half of the revenues the Ukrainian government would receive from mining would go into a joint US-Ukraine investment fund. These revenues would then be reinvested in Ukraine’s economy, although the United States would also claim a portion.
President Trump presented this agreement as repayment for past U.S. assistance to a war-torn country.
Читайте нас у Telegram: головні новини коротко
Strategic importance for the United States
The United States has a particular interest in developing Ukraine’s critical minerals as a way to reduce its dependence on China, which dominates global supply chains. Beijing has used export restrictions on these minerals to pressure Trump to reach a trade deal.
Ukrainian authorities claim that the country has deposits of almost half of the 50 minerals that the United States has identified as critical to its economy and national security, including lithium, graphite, and titanium. According to the Kyiv School of Economics, Ukraine has the largest titanium reserves in Europe and a third of the continent’s lithium reserves.
Challenges and prospects
Industry analysts warn that most of the projects under the agreement are likely to become operational only in a decade or more. This means that the joint US-Ukraine investment fund is unlikely to generate significant revenues for years and may become profitable only long after Trump leaves office.
Experts note that the path to mineral extraction is full of challenges: outdated geological research may obscure the true value of Ukraine’s subsoil; damaged power plants needed to extract resources need repair; and the ongoing war makes any investment fundamentally risky.
Anti-corruption and transparency
Investors are also cautious about entering a country where corruption has long hindered the sale of state assets.
“We hope that Ukraine will move forward with an open, fair and transparent process,”
– brian Menell, TechMet’s chief executive, said in a statement last week.
To mitigate risks, Menell and other investors favor an investment tool known as a production sharing agreement, a contract that allows investors to mine minerals in exchange for a production sharing agreement with the Ukrainian government.
Expanding cooperation to the defense sector
In an effort to generate revenue faster, Economy Minister Yulia Svyrydenko this month proposed that the joint investment fund also support projects in Ukraine’s defense industry. The country has numerous factories producing drones, shells, and artillery pieces at a fraction of the cost of the US and Europe, but lacks the capital to scale up.
American companies could provide that capital, with revenues from future arms sales ultimately replenishing the fund, said Natalia Shapoval, head of the Kyiv School of Economics Institute.
“The point is to make the fund more attractive to the United States. Where do you invest money to make a profit in Ukraine today? In defense,”
– she said.
Development prospects
The recommendations are expected to take several weeks to finalize, and the Ukrainian government may still decide not to open the bidding process. However, Monday’s decision signaled Ukraine’s efforts to show Trump that the deal is moving forward, amid growing fears that the White House may be backing away from the war as ceasefire talks with Russia stalled.
The bidding process that Ukraine launched on Monday for the Dobra lithium deposit is part of a production sharing agreement, which shows the seriousness of both sides in realizing this strategic partnership, the article says.
Читайте нас у Telegram: головні новини коротко
