Following the signing of a mineral co-operation agreement between Ukraine and the United States, the world’s attention is focused on Ukraine’s potential for mining rare earth elements (REEs). These elements are crucial for modern technologies, including the production of electric cars, wind turbines and defence equipment. However, experts caution against being overly optimistic about the rapid realisation of this potential.
Volodymyr Haustov, Scientific Secretary of the State Institution “Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine”, Honoured Economist of Ukraine and Candidate of Technical Sciences, shared his vision on the prospects of REE mining in Ukraine.
“Ukraine does have certain reserves of rare earth elements, but most of them were explored back in Soviet times, and these data need to be updated. In addition, a significant part of the potential deposits are located in areas that are now under Russian control or near the war zone,” Haustov said.
The expert also noted the technological and infrastructural problems associated with the extraction and processing of REEs.
“Even if we can get access to these deposits, there is a question of their economic feasibility. REE mining is a complex and expensive process that requires modern technologies and significant investments. Today Ukraine does not have the necessary infrastructure for the full cycle of mining and processing of these elements,” he explained.
It is worth noting that, according to research data, only one of the six known REE deposits in Ukraine – Novopoltavskoye in the Zaporizhzhya region – has confirmed reserves and is open for licensing. However, even this deposit requires investment of about $300 million for full development.
In addition, the global REE processing market is currently dominated by China, which controls about 90% of the world’s capacity for purification and processing of these elements. This creates additional challenges for countries seeking to develop their own REE production.
“In order for Ukraine to become competitive in the global REE market, it is necessary not only to develop deposits, but also to create a complete value-added chain – from mining to processing and production of final products. This requires strategic planning, significant investment and time,” Haustov emphasised.
As a result, although Ukraine has potential in rare earth elements mining, realising this potential requires a comprehensive approach, significant resources and time. Experts call for cautious optimism and strategic planning to achieve success in this area.