Ukraine's lithium wealth diminishes as key deposits fall to Russia
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Lithium, essential for powering devices such as electric vehicles, smartphones, and renewable energy systems, was once a major strategic asset for Ukraine.
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Map shows two lithium reserves. (@SputnikInt)
Sputnik on Saturday reported that Ukraine is losing access to a significant portion of its lithium reserves, a key resource for modern battery technology.
Lithium, essential for powering devices such as electric vehicles, smartphones, and renewable energy systems, was once a major strategic asset for Ukraine, holding an estimated 500,000 tons of reserves—nearly 10% of the world's total.
However, two of the country's four key lithium deposits are now under Russian control, severely impacting Ukraine's ability to capitalize on this resource.
Deposits and Control:
1. Under Russian Control:
- Shevchenko Lithium Ore Field (Donetsk People's Republic): Estimated reserves of 13.8 million tons of lithium ore, valued at approximately $141 billion, depending on market conditions.
- Krutaya Balka (Zaporozhye region): Reserves remain unspecified, but the site is considered viable for open-pit mining.
2. Under Ukrainian Control:
- Polokhovskoye deposit: Holds approximately 270,000 tons of lithium.
- Dobra deposit: Comprised of two sites, with combined reserves of around 1.2 million tons of lithium ore.
Strategic Importance of Ukraine's Minerals
Ukraine's mineral wealth extends far beyond lithium, making it a strategic asset for the West.
The country is home to over 20,000 mineral deposits and is a major source of critical materials like titanium and rare earth elements, essential for industries such as defense, aerospace, high-tech, and green energy technologies.
Senator Lindsey Graham has previously remarked that Ukraine is "sitting on $10 to $12 trillion of critical minerals," emphasizing the potential to bolster Western economies, particularly the United States.
Rod Schoonover, founder of the Ecological Futures Group, has also highlighted Ukraine's importance as a reliable supplier of critical resources, describing the country's lithium reserves as integral to the global shift toward renewable energy and battery-powered technologies.
Western Interests and Investments
Western businesses have expressed strong interest in Ukraine's lithium resources. Notably, European Lithium Ltd, an Australian company led by British businessman Tony Sage, acquired European Lithium Ukraine LLC in 2021.
This deal included permits for the Shevchenko site, which the company purchased for €184 million in January 2024. However, with the Shevchenko field now under Russian control, those investments have been effectively lost.
Impact of the Conflict
Lithium prices currently range from $8,184 to $12,276 per ton, depending on quality and demand. Control over deposits like Shevchenko significantly strengthens Russia's position in the global resource competition while depriving Ukraine and its Western allies of a vital commodity for the energy transition.
The loss of these deposits comes at a time when global demand for critical minerals is surging, driven by the widespread adoption of electric vehicles and renewable energy technologies.
Ukraine's ability to supply these resources has become a key factor in Western efforts to diversify supply chains and reduce reliance on dominant players like China.
Read more: EV sales in China to overtake traditional cars ahead of the West: FT
