Just days after effectively being “shut out” of the White House, President Volodymyr Zelensky signaled that he was ready to sign the mining agreement requested by Washington. Still, uncertainty remains over Ukraine’s previously stated demand for security guarantees.
The leaked details of the deal reveal some striking conditions. The U.S. has reportedly requested a “perpetual 50% stake” in Ukraine’s mineral assets. There are also plans for a joint investment fund aimed at preventing “hostile parties to the conflict” from benefiting from Ukraine’s reconstruction.
At the heart of the ongoing tensions between the United States and Ukraine lies Washington’s growing pressure on President Zelensky. Citing “U.S. aid” and the need for “repayment,” American officials have reportedly adopted an increasingly urgent and forceful tone in their negotiations. But beneath this rhetoric is a deeper concern: China’s global dominance in rare earth elements, which the U.S. considers a serious national security threat.
China currently controls between 60% and 70% of global rare earth element production and holds as much as 90% of the world’s processing capacity. This makes Beijing the undisputed leader in both mining and refining these critical resources.
Rare earth elements, along with other key minerals like lithium, are essential not only for the rapidly growing electric vehicle sector but also for advanced military and defense technologies. For the United States, securing access to these minerals is about far more than economics, it is a critical piece of both economic competition and national defense.
The “peace” that the U.S. is trying to broker with Ukraine comes with strategic calculations. Washington is preparing for new arenas of competition in the global race for critical minerals.
The United States was, in fact, the first country to take major steps in the field of rare earth elements. During World War II, American military engineers worked on rare earth metals, laying the groundwork for what would later become modern magnets. But over the last 30 years, China has gradually achieved dominance in the industry, thanks to lower production costs and weaker environmental regulations.
Ukraine now presents an opportunity to break this dependency. With the continent’s largest reserves of lithium, titanium, and rare earth elements, the country could serve as a new supply hub for the West. More importantly, Ukraine’s underground wealth is not only vital for the green energy transition. These resources are also essential for modern weapon systems, from F-35 fighter jets to radar technologies and hypersonic missiles.
Under these circumstances, Zelensky’s government faces a critical choice. Accept the terms, and Ukraine may enter a rapid reconstruction process under U.S. and Western sponsorship. But doing so would leave the country’s energy and mining policies heavily dependent on external powers. On the other hand, rejecting the offer could risk losing military support and financial aid.
As Putin waits for an opportunity to exploit the situation, Washington is determined not to let China or Russia fill the gap. Control over these resources will be a decisive factor in future technology conflicts.
That’s why the U.S. peace proposal to Ukraine isn’t just a call for a ceasefire. It is a cornerstone of the West’s strategy to strengthen its position in the energy and technology battles of the 21st century.
