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| Ukraine US Critical Minerals |
Joint fund targets energy security and rare metals exploration in Ukraine
Ukraine and the United States have launched a $150 million investment fund focused on critical minerals, marking a strategic push to rebuild Ukraine’s economy and secure Western supply chains. The US International Development Finance Corporation (DFC) and Kyiv will each contribute $75 million to the fund, which supports projects in energy, infrastructure, and rare metals.
Ukraine to prioritize titanium, zirconium and critical mineral supply
Prime Minister Yulia Svyrydenko confirmed the fund’s initial focus will include critical minerals vital to defense and green technologies. These include titanium and zirconium, both essential to aerospace and clean energy industries. DFC officials recently toured central Ukraine’s Kirovohrad region, home to significant titanium and zirconium ore reserves.
As a result, the fund aligns with Washington’s broader goal of diversifying strategic metal imports away from China. Meanwhile, Ukraine gains capital to accelerate post-war economic recovery through high-value mineral extraction and processing. According to Economy Minister Oleksiy Sobolev, the government plans to implement three large-scale projects by 2026.
Deal structure ensures shared profits and long-term US access
The Ukraine-US critical minerals deal, signed in April and originally backed by former President Donald Trump, guarantees the US preferential access to Ukrainian mineral resources. In return, half of Ukraine’s new mineral revenues will fund additional joint investments. Remaining profits will be split between both nations.
However, the agreement carries geopolitical weight. Trump’s renewed emphasis on “return on aid” has reframed US support as investment-driven. This shift could influence future foreign policy toward resource-rich allied nations. In contrast, DFC describes the fund as a “pilot commitment,” indicating potential expansion based on project outcomes.
Ukraine holds 22 of the 34 minerals classified as critical by the European Union. These include rare earth elements, non-ferrous metals, and ferroalloys—materials integral to defense, construction, and clean tech industries. Therefore, successful execution of this initiative could reshape global raw material supply dynamics.
ScrapInsight Commentary
This bilateral fund signals a strategic recalibration of aid into resource partnerships. Ukraine’s rare metal reserves offer the West a viable alternative to Chinese supply chains. If executed efficiently, this model could redefine critical mineral diplomacy across conflict-affected regions.
