Russia Seizes
Key Lithium Field in in Ukraine
The capture highlights a
core problem in the agreement. The more territory Moscow grabs, the fewer resources
Kyiv can offer to Washington.
·
Russian
forces have seized control of a valuable lithium deposit in the Donetsk region
of eastern Ukraine
·
The
Trump administration has aimed to tap into Ukraine’s vast lithium reserves,
some of Europe’s largest, through a recently signed landmark agreement granting
it front-row access to the country’s mineral wealth.
·
Russia’s
occupation of roughly a fifth of Ukraine’s territory means it already controls
many deposits of titanium, manganese and other critical minerals
· But the Shevchenko deposit stood out for the quality of its ore, primarily composed of spodumene. That mineral contains high levels of lithium, which has proved an important driver of Australia’s booming mining sector.
[ABS News Service/28.06.2025]
Russian forces have seized control of a valuable
lithium deposit in the Donetsk region of eastern Ukraine, depriving the country of a critical asset
that could have helped support a new economic partnership with the United States.
The deposit, just outside the Shevchenko village in western
Donetsk, was captured in recent days, according to battlefield maps from independent
groups tracking Russian advances through geolocated combat footage. Moscow’s troops
seized it as part of their summer offensive, which has achieved steady gains across
Donetsk.
Though relatively small — it covers only 100 acres — the deposit
was seen by industry analysts as one of Ukraine’s most valuable because of its rich
concentration of lithium, a mineral essential for manufacturing advanced technologies
such as electric batteries. The United States has designated lithium as critical
to its economy and national security.
But the capture of the Shevchenko deposit highlights a core
challenge to the deal. The more territory Russian forces seize in Ukraine, the fewer
resources Kyiv can offer to Washington.
“If Russian troops go further, capture more and more territory,
they will control more and more mineral deposits,” said Mykhailo Zhernov, director of Critical Metals Corp, an American company
that used to hold a license to exploit the Shevchenko deposit. “It’s an issue for
this deal.”
Yuliia Svyrydenko, the Ukrainian economy
minister, who signed the deal on behalf of her country, declined through a spokesman
to comment on the capture of the deposit, which is the first to fall into Russian
hands since the agreement was signed.
The deal establishes a joint U.S.-Ukrainian fund with priority
rights to invest in mineral extraction projects in Ukraine. The United States has
shown particular interest in tapping Ukraine’s minerals as a way to reduce reliance
on China, which dominates global supply chains.
During negotiations over the deal, Ukrainian officials tried
to secure more American military support, arguing that it was in the United States’
economic interest to help Ukraine push back Russian forces and retain control of
valuable reserves. But Washington consistently refused to tie the minerals deal
to additional military support.
Ukrainian officials see the deal as a pathway to securing long-term
American support for their war-battered country. In an apparent effort to show the
Trump administration that the deal could yield swift results,
the Ukrainian government last week approved the first steps to open a large state-owned
lithium deposit to private investment.
Ms. Svyrydenko said that site, known
as the Dobra lithium field, could become the first project started under the deal.
Several investors have already shown interest, including Critical Metals Corp, which,
despite the loss of the Shevchenko deposit, remains eager to take part in the U.S.-Ukraine
minerals partnership, Mr. Zhernov, the company’s director,
said.
Still, industry analysts say the deal faces many hurdles, including
complex licensing procedures and outdated geological surveys that cloud the true
value of Ukraine’s subsoil.
But perhaps the greatest challenge is Russia’s continued advance
on the battlefield.
Russia’s occupation of roughly a fifth of
Ukraine’s territory means it already controls many deposits of titanium, manganese
and other critical minerals,
as shown by a map compiled by the Institute for the Study
of War, a Washington-based research group. Moscow’s forces have also destroyed or
captured some of Ukraine’s largest coal mines.
As Russian forces continue to push forward in the east, they
are now getting closer to more deposits of titanium and other raw materials such
as uranium.
Ukraine still has two other major lithium reserves available
for development, both located in the central part of the country, well beyond the
current front lines. But the Shevchenko deposit stood out
for the quality of its ore, primarily composed of spodumene. That mineral contains
high levels of lithium, which has proved an important driver of Australia’s booming
mining sector.
The potential of the deposit has not been lost on Russia, which
has already plundered other Ukrainian resources, like grain, during the war.
Vladimir Ezhikov, a senior Russian-appointed
official in the Donetsk region, said the mining division of Russia’s state nuclear
giant Rosatom had shown an interest in the Shevchenko deposit.
“We understand that this deposit is a very important element
of the future economy and has great potential,” Mr. Ezhikov
told the Donetsk News Agency, a Kremlin-run publication, last year as Russian troops
were advancing toward the Shevchenko field.
“This deposit will definitely find a license holder,” he added.
“There will definitely be investment and lithium mining.”