**London**: Experts advocate for a U.S.-EU partnership to enhance supply chain security and investments in Ukraine’s mining sector. This approach aims to address geopolitical challenges and minimise dependencies while ensuring sustainable resource management amid ongoing discussions regarding critical minerals extraction.
Experts are advocating for a collaborative effort between the United States and the European Union to secure access to Ukraine’s critical minerals, highlighting that a joint partnership would be beneficial to all parties involved. This call for transatlantic cooperation comes as discussions around resource extraction and geopolitical stability intensify.
Dr. Patrick Schroder and Armida van Rij, senior research fellows at the respected think tank Chatham House, have positioned a U.S.-EU partnership as vital for enhancing supply chain security and accelerating investments in Ukraine’s mining sector. “A joint U.S.-EU approach would enhance supply chain security, accelerate investments and provide geopolitical stability,” they stated. They emphasise that the focus should not only be on extraction but also on creating durable value chains that offer benefits collectively.
On the political front, former President Donald Trump announced last Thursday that discussions with Ukraine regarding potential resource agreements were progressing well. “One of the things we are doing is signing a deal very shortly with respect to rare earths with Ukraine,” Trump declared during an event at the White House, further asserting that the negotiations were “pretty well” advanced following talks with both Russian and Ukrainian leaders.
However, the extraction of valuable resources, including lithium and rare earth elements, poses significant challenges. Many of these resources are located in regions of Ukraine that are under occupation, complicating their extraction and processing. Moreover, the U.S. faces existing logistical and regulatory hurdles in developing Ukraine’s mining infrastructure.
Europe, with its established mining and refining frameworks, has been identified as a natural partner in this endeavour. The EU boasts a cohesive regulatory structure, which could expedite the resource extraction process and facilitate effective exporting to global markets. Prominent European firms, including Boliden ADR and Glencore PLC, leverage their expertise in mining and refining operations, including notable facilities such as the Nikkelverk nickel refinery in Norway and the Rönnskär copper smelter in Sweden.
Adding to the complexity is the increasing dependency on imports from China, which has been imposing export restrictions that heighten financial and geopolitical risks for both the U.S. and EU. A cooperative initiative could alleviate these dependencies, providing more stable and secure supply chains.
The institutional groundwork for this partnership is partially in place; the EU has been fostering deeper ties with Ukraine through the Ukraine-EU Strategic Partnership on Raw Materials, established in 2021. Additionally, the U.S. and EU are collaborating through the Minerals Security Partnership initiated in 2022. A trilateral agreement could further enhance these existing frameworks, aligning with initiatives like the EU’s Critical Raw Minerals Act.
Nevertheless, achieving a unified approach among the three administrations may prove challenging. Trump’s previously articulated transactional approach typically emphasises quick outcomes, while the EU’s stance focuses on long-term integration. Experts argue that fostering cooperation rather than competition is essential for maximising the benefits of these resources. “The minerals race shouldn’t be a zero-sum game. Ukraine’s recovery depends on sustainable investment, not short-term exploitation,” the researchers concluded.
In the backdrop of these discussions, the implications of a synergistic approach between the U.S. and EU regarding Ukraine’s mineral wealth could play a crucial role in shaping the future of global supply chains and geopolitical dynamics in the region.
Source: Noah Wire Services
Subscribe to Industry Updates
