US President Donald Trump on Monday (Feb 3) stated that he wants Ukraine to supply rare earth minerals to the United States as a form of compensation for the financial aid provided in support of its war against Russia.

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Speaking to reporters at the White House, Trump claimed that Ukraine was open to the idea and emphasised his desire for "equalisation" in return for Washington's near "$300 billion" in assistance.

"We're telling Ukraine they have very valuable rare earths," Trump said.

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"We're looking to do a deal with Ukraine where they're going to secure what we're giving them with their rare earths and other things," he added.

Trump’s proposal comes amid a freeze on foreign development aid by his administration, which has forced many humanitarian organisations in Ukraine to suspend their operations. Despite this, President Volodymyr Zelensky has said that US military aid provided under the Biden administration remains unaffected by the current halt in foreign assistance.

Trump has consistently voiced opposition to the continued supply of billions of dollars in military equipment and weaponry to Ukraine, arguing that the financial burden on the US is too great.

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It remains unclear whether Trump’s use of the term "rare earths" was about all critical minerals or specifically rare earth elements.

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What are rare earths?

Rare earths refer to a group of 17 metals essential in manufacturing magnets used in electric vehicles, mobile phones, and various electronic devices. There are no known substitutes for these elements.

According to the US Geological Survey, 50 minerals are classified as critical for the American economy and national defence. This includes certain rare earth elements, as well as nickel and lithium.

Ukraine possesses significant deposits of uranium, lithium, and titanium, though these are not among the world’s top five largest reserves by volume. The United States also has its own untapped reserves of these and other essential minerals.

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Why is Trump interested in Ukraine’s rare earth minerals?

The US currently operates only one rare earth mine and has minimal processing capability. While several companies are working on developing new projects, China remains the dominant global producer of rare earth elements and other crucial minerals.

Trump’s approach to exchanging aid for minerals aligns with his broader foreign policy strategy, which has prioritised economic leverage in international dealings. He has used similar tactics to pressure allies, such as Colombia and Mexico, into negotiating agreements on various issues.

His interest in Ukraine’s rare earth resources is not entirely new, as Zelensky himself had previously stressed Ukraine’s wealth of critical minerals as a means to attract the Trump administration’s support. In recent months, the Ukrainian president has argued that defending Ukraine is also in America's economic interest, given the potential benefits of Ukraine’s mineral resources for US industries.

Following Trump's comments, a senior Ukrainian official told The New York Times on Monday night that Ukraine is open to working with the US on rare earth mineral agreements, provided that Washington offers enough security guarantees to prevent these resources from falling into Russian hands.

Last year, Ukraine had planned to sign an agreement with the Biden administration to collaborate on extracting and processing minerals. However, the Ukrainian authorities delayed the signing, with officials on both sides indicating that Kyiv was waiting for Trump to take office before finalising a deal.

(With inputs from agencies)