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| Critical Minerals |
Kyiv Eyes Foreign Investment to Rebuild War-Damaged Minerals Sector
Ukraine is restructuring its underdeveloped minerals sector to attract billions in foreign investment through a new U.S. partnership. Signed in April and activated on May 23, the Ukraine-U.S. minerals deal establishes a joint investment fund backed by proceeds from new mining licenses.
Ecology Minister Svitlana Hrynchuk confirmed the agreement aims to revitalize a sector that has lost an estimated $1.7 trillion due to war-related damage. Ukraine holds 22 of the EU’s 34 listed critical minerals, including titanium, graphite, and rare earths essential for green energy, defense, and high-tech manufacturing.
Bureaucratic Reforms and Digital Mapping Aim to Unlock Exploration
Ukraine plans to overhaul outdated licensing systems and reduce Soviet-era bureaucracy. A review of 3,000 existing mining licenses is underway, with about 10% expected to be dormant. Hrynchuk emphasized that the government seeks to revive long-inactive but valuable mining sites, not confiscate assets without cause.
Digitization of geological data is another key initiative, with 40% of Soviet records already processed. In partnership with the European Commission and the EBRD, Ukraine aims to digitize 80% of legacy geological data within the next two years. This will streamline due diligence for international investors and reduce development lead times.
Strategic Minerals and Auction Revenues Draw Early Domestic Interest
Despite ongoing conflict, Ukraine auctioned 120 licenses in 2024, raising 2.4 billion hryvnias. In 2025, it has already issued 32 licenses, primarily for construction materials and amber. However, growing investor interest is shifting toward higher-value minerals like titanium, graphite, and manganese—resources vital for aerospace, batteries, and decarbonization.
The deal gives the U.S. preferential access to new mineral contracts, positioning American firms to play a leading role in Ukraine’s resource-based reconstruction. The fund is expected to bolster capital inflow, enhance technological capabilities, and support Ukraine’s long-term bid to join the European Union by 2030.
ScrapInsight Editorial Commentary
Ukraine’s pivot to a liberalized minerals strategy marks a potential inflection point for global supply chains, especially in strategic and critical metals. As Western governments seek to reduce dependence on Chinese supply, Ukraine’s integration into transatlantic resource frameworks could reshape trade routes and investment flows. However, conflict risks, regulatory uncertainty, and infrastructure gaps remain significant barriers. For recyclers and traders, the medium-term outlook suggests increased demand for secondary titanium, graphite, and manganese as primary supplies remain volatile and capital-intensive projects ramp up.
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RAREMETAL
