As Trump refuses to arm Ukraine, Russia Seizes Ukrainian Lithium Deposit, Undermining U.S. Minerals Deal
Russian troops have captured one of Ukraine’s most valuable lithium deposits, threatening a major U.S.-Ukraine minerals deal and deepening unease in Kyiv about the consequences of continued battlefield losses.
The Shevchenko deposit—located just west of the village of the same name in Donetsk region—was taken by advancing Russian forces this week. Though relatively compact, the site contains high-grade spodumene ore, a critical source of lithium used in electric batteries, defense technologies, and renewable energy storage. Industry analysts had regarded it as one of Ukraine’s most commercially promising fields.
Its seizure is the first loss of a critical mineral site since the signing of a landmark U.S.-Ukraine investment agreement earlier this year. That deal gave the United States preferential access to Ukraine’s critical minerals, including lithium, as part of an effort to reduce American dependence on Chinese supply chains and boost Ukraine’s economic resilience.
The capture of Shevchenko underscores a core vulnerability in the agreement: the more territory Russian forces seize, the fewer resources Kyiv can deliver.
“If Russian troops go further and capture more territory, they will control more and more mineral deposits,”
said Mykhailo Zhernov, director of Critical Metals Corp., a U.S. firm that previously held the license for the Shevchenko site.
“It’s a real challenge for this deal.”
The Trump administration has promoted the minerals partnership as a long-term strategic win. But in Ukraine, there is a growing sense of urgency—and quiet frustration—that while Russia is moving quickly to seize mineral-rich territory, the United States has shown little appetite for accelerating military support to help protect those assets.
Officials involved in the negotiations had reportedly sought stronger security guarantees or additional arms deliveries, framing Ukraine’s ability to hold its territory as directly tied to the success of the economic partnership. But the military and investment tracks were kept separate.
Meanwhile, Kyiv has pressed ahead with the Dobra lithium project, a large state-owned deposit in central Ukraine that remains under Ukrainian control. Several international investors, including Critical Metals Corp., have expressed interest.
Still, the loss of Shevchenko is a reminder that time is not on Ukraine’s side. Russia now controls roughly a fifth of Ukrainian territory, including regions rich in titanium, manganese, uranium, and coal. The Kremlin has already moved to exploit some of these assets, including through Rosatom, its state nuclear conglomerate, which has shown interest in lithium development in occupied Donetsk.
“This deposit will definitely be mined,” said Vladimir Ezhikov, a Russian-installed official in Donetsk, in a local interview last year. “There will definitely be investment.”
Ukraine still retains two other major lithium fields in the center of the country, well behind current front lines. But as Russian forces push further east, the gap between political agreements and strategic realities is growing more visible.
In private, many in Ukraine’s political and business circles are asking the same question: what good is a minerals deal, if the minerals are falling into Russian hands?
