Strategic Raw Materials Under Russian Control: What Does It Mean for the Rare Metals Market?

As reported by the French daily Le Figaro, Russia has taken control of areas in the Donetsk region that contain the largest lithium deposits in Europe. These areas include the vicinity of the towns of Velyka Novosilka and Shevchenko, which recently came under Russian control as a result of a military offensive. Lithium, often referred to as “white gold,” is currently one of the most important strategic resources—critical for the production of batteries used in electric vehicles, smartphones, and other electronic devices.

Shevchenko – Ukraine’s Purest Lithium
According to an analysis conducted by Le Figaro journalists, the lithium deposits in the Shevchenko area are not only the largest in Ukraine but also stand out for their exceptional purity. This makes their extraction technically easier and more economically viable than in other known locations. According to researchers Svitlana Vasylenko and Uliana Naumenko from the National Academy of Sciences of Ukraine, even before Russia’s full-scale invasion, Ukraine had the potential to become one of the world’s leading lithium producers. Estimated lithium reserves in Ukraine amount to approximately 500,000 tons, exceeding the documented reserves of Portugal—currently the EU’s largest lithium source.

Four Main Locations – Two Under Occupation
Ukraine has at least four areas with high lithium concentrations: two in the west—Polokhivske and Dobra—and two in the east—Kruta Balka and Shevchenko. Currently, both eastern deposits are under Russian control. Despite the great potential, none of these locations have yet been developed for industrial mining. Experts emphasize that starting extraction in wartime conditions is practically impossible, and even after the conflict ends, launching production will require significant financial and infrastructure investments.

International Interests and Geopolitical Tensions Over Lithium
Interest in Ukraine’s lithium reserves is not new on the international stage. During Donald Trump’s presidency, the United States signed an agreement with Ukraine, giving Americans priority access to the country’s raw materials. This agreement was meant to ensure the U.S. strategic access to rare metals, whose importance is increasing alongside the global energy transition.

At the same time, Le Figaro recalls that the Trump administration did not rule out cooperation with Russia in the field of rare metal exploitation. In a speech in February 2025, President Vladimir Putin expressed readiness to cooperate with foreign partners, including the U.S., in the extraction and processing of these resources.

Russia’s Strategic Move in the Fight for Key Energy Resources
Russia’s takeover of lithium-rich territories fits into the broader context of the geopolitical struggle for access to key energy resources. With the rising demand for batteries for electric vehicles and energy storage systems, control over lithium deposits is becoming an increasingly strategic asset. For Russia—facing international sanctions—gaining access to such resources may serve as leverage in trade and political relations.

Experts: Mining Unlikely During War, but Strategic Significance is Undeniable
While initiating lithium mining on territories occupied by Russia seems unlikely at present, the geopolitical significance of this development is unquestionable. Analysts stress that controlling the largest lithium reserves in Europe could one day become a bargaining chip for Moscow in negotiations with Western countries.

Le Figaro notes that even after the conflict ends, rebuilding the mining infrastructure will be a major challenge for Ukraine. Meanwhile, Russia—by strengthening its positions in the region—is increasing its influence over future supply chains for resources essential to Europe’s energy transformation.