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.
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.
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.”
Constant Méheut reports on the war in Ukraine, including battlefield developments, attacks on civilian centers and how the war is affecting its people.
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