Russia Seizes Key Lithium Mine, Undermining U.S.-Ukraine Mineral Pact
Russia’s recent capture of the village of Shevchenko in eastern Ukraine has raised serious concerns about the future of a major U.S.-Ukraine critical minerals agreement, as Russian forces advance toward one of the region’s most valuable lithium deposits.
On June 26, Russia’s defense ministry announced that troops from its Eastern Group had taken control of Shevchenko, a village near the intersection of the Donetsk, Zaporizhzhia, and Dnipropetrovsk regions. The area was home to roughly 1,200 people before the war.
According to Ukrainian military-linked analysts at DeepState, Russian forces now occupy nearly the entire village and are continuing their push west. Ukrainian media later confirmed that Russian troops had reached a nearby lithium deposit east of the village.
Although relatively small—about 40 hectares—the mine is considered a geological treasure. Experts estimate it holds roughly 1.2 million tons of lithium-rich ore with a concentration exceeding 1.5%, making it one of the most promising lithium sources in Eastern Europe.
Strategic Setback for U.S.-Ukraine Mineral Deal
Russia’s seizure of Shevchenko and its surrounding lithium reserves underscores the growing vulnerability of a U.S.-Ukraine mineral cooperation deal signed in May. The agreement aimed to give American firms access to Ukraine’s vast deposits of critical minerals—especially lithium, used in electric vehicle batteries and defense technologies.
“If Russia continues to advance and capture more territory, they’ll gain control of more mines,” said Mykhailo Zhernov, director of a U.S.-based company previously awarded extraction rights near Shevchenko.
“That leaves Ukraine with fewer resources for the U.S. to develop, weakening the foundation of the entire agreement.”
Russia currently occupies nearly 20% of Ukraine’s pre-2014 territory, including regions rich in titanium, manganese, and other strategic minerals. The Kremlin has also seized or destroyed several of Ukraine’s largest coal mines and could soon reach untapped deposits of titanium and uranium if its military gains continue.
Why Lithium Matters
Lithium is designated by the U.S. government as a critical mineral for both economic and national security. The Biden and Trump administrations have each sought alternative sources of lithium outside of China, viewing Ukraine’s reserves as a key opportunity for diversification.
Ukraine estimates it holds about 5% of the world’s reserves of high-value critical minerals, including graphite, titanium, uranium, and lithium. According to the U.S. Geological Survey, Ukraine possesses 20 of the 50 minerals deemed essential to U.S. economic and military needs.
Pressure to Deliver—Amid War
In recent months, Ukraine has taken steps to open its mineral sector to private investment. Officials approved private development at the state-owned Dobra lithium mine in central Ukraine—a move seen as an effort to reassure Washington that the U.S. deal is viable despite the ongoing war.
Ukraine’s Economy Minister Yulia Svyrydenko has stated that Dobra could become the first flagship project under the U.S.-Ukraine minerals partnership.
Still, the path forward is riddled with obstacles: bureaucratic red tape, the immense costs of resource extraction, and the constant threat of Russian airstrikes on energy infrastructure essential for mining operations.
Most geological data on Ukraine’s mineral wealth dates back to the Soviet era and may no longer be accurate. Modern surveys—needed for commercial extraction—could take years to complete.
Billions in Resources, Billions in Risk
Industry analysts estimate that Ukraine’s known and potential mineral deposits—across both government-held and Russian-controlled areas—could be worth trillions of dollars. But developing them would likely require billions in foreign investment, robust security guarantees, and massive energy grid upgrades—none of which can move forward at scale while war persists.
Meanwhile, U.S. officials have refused to include binding military or financial guarantees in the minerals agreement, a key demand from Kyiv aimed at ensuring long-term American support.
“Without secure access to these resources, the entire economic case for the deal begins to collapse,” one Western energy advisor warned.
As the battlefield map continues to shift, so too does the future of Ukraine’s critical mineral ambitions—and with it, America’s hopes of building a more secure, China-free supply chain.
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