Ukraine begins implementing mineral agreement with US - NYT
Photo: First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko (Getty Images)
Ukraine has taken a step toward implementing its minerals agreement with the US. Lithium from the Dobra deposit will serve as the first test of the new arrangements, according to The New York Times.
On June 16, the Ukrainian government approved the first steps toward implementing a historic agreement with the United States on critical minerals. This involves preparing to open the large state-owned lithium deposit Dobra to private investors.
Information on Dobra
Located in the Kirovohrad region near Dobrovelychkivka, the deposit holds strategic importance for electric vehicle battery production.
It is one of Ukraine’s largest lithium sources, estimated at 80–105 million tonnes of ore with 1.1–1.4% lithium oxide (Li₂O).
It consists of two sites, Stankuvate and Nadiia, with a combined estimated 1.2 million tonnes of lithium ore.
First step in implementing US deal
On June 16, Ukraine’s Cabinet approved preparations for a tender that will allow private investors to develop the Dobra deposit. This move is intended to demonstrate tangible progress to the United States, especially the Trump administration, with whom the agreement was reached.
American investors and backing
Potential bidders include TechMet (a company partially backed by the US International Development Finance Corporation) and businessman Ronald Lauder, a known ally of Donald Trump.
Both have previously advocated for opening Dobra to foreign investment.
TechMet has described the resource as "highly significant" and has been monitoring the site since 2023.
Way deal model works
Profits from extraction are expected to be split equally, 50% allocated to a joint investment fund.
Part of the money would be reinvested in Ukraine’s economy, while another portion would reimburse the US for wartime assistance.
The government is also considering directing funds toward defense industry development.
Investor concerns
Despite the mineral wealth, challenges include outdated geological data, damaged infrastructure, wartime risks, and concerns over transparency.
Foreign companies have called for production-sharing contracts and international arbitration mechanisms to reduce investment risk.
Ukraine's expectations
Ukrainian authorities hope that showing concrete progress on the agreement with Washington will reduce the risk of political disengagement from the US, especially amid stalled peace efforts with Russia and growing skepticism in the White House regarding further involvement in the war.
Economy Minister Yuliia Svyrydenko stated that the strategic partnership between Ukraine and the United States involves not only access to resources but also broader geopolitical considerations.
Background
On May 1, Ukraine and the US signed an agreement to create a joint investment fund.
The Ukrainian parliament ratified the intergovernmental deal on May 8, and President Volodymyr Zelenskyy signed it into law on May 12, finalizing the ratification process.
