Department of Research, Studies and International News 21-03-2025

United States President Donald Trump has announced that his administration is on the verge of finalizing a rare earths agreement with Ukraine, a move aimed at strengthening domestic access to critical minerals. The statement came shortly after Trump signed an executive order invoking the Defense Production Act (DPA), a Korean War-era law that grants the federal government broad authority to mobilize industrial resources in the interest of national security.

Rare Earths and National Security

Speaking at the White House on Thursday, Trump emphasized the importance of securing supplies of rare earth minerals, which are vital components in the manufacturing of high-tech electronics, batteries, and magnets. “One of the things we are doing is signing a deal very shortly with respect to rare earths with Ukraine,” Trump said. “They have tremendous value in rare earths, and we appreciate that.”

The executive order directs federal agencies to identify potential mining sites and government-owned land that could be used to enhance domestic production of these critical materials. This initiative aligns with broader efforts by the Trump administration to reduce reliance on foreign sources for essential resources, particularly as geopolitical tensions with major suppliers, such as China, continue to rise.

Ukraine’s Role in the Agreement

The U.S. and Ukraine had been on course to sign a deal granting Washington access to Kyiv’s rare earth reserves. However, negotiations faced setbacks following a public disagreement between Trump and Ukrainian President Volodymyr Zelenskyy. Despite the tensions, Zelenskyy reaffirmed his willingness to move forward with the agreement, stating that his government remained committed to signing the deal while ensuring Ukraine’s interests were taken into account.

Zelenskyy also addressed the broader context of U.S.-Ukraine relations, highlighting recent discussions with the Trump administration about energy security. As part of ongoing diplomatic efforts, Kyiv has reportedly agreed to a U.S. proposal to halt attacks on energy infrastructure, a move that comes in the wake of Russian President Vladimir Putin’s acceptance of a related ceasefire arrangement.

Beyond economic negotiations, Trump also spoke about ongoing efforts to broker a peace deal in Ukraine. He expressed optimism about diplomatic progress, stating, “Our efforts are going pretty well. Hopefully, we can save thousands of people a week from dying. That’s what it is all about.” The president lamented the human cost of the conflict, calling the casualties “so unnecessary.”

While details of the proposed peace framework remain unclear, the Trump administration appears focused on combining economic agreements with diplomatic initiatives to accelerate an end to the war. The rare earths deal with Ukraine is seen as part of this broader strategy, potentially providing Kyiv with economic incentives to align more closely with U.S. interests.

Strategic Implications and Future Prospects

The push to secure rare earths from Ukraine reflects Washington’s broader strategy to diversify its sources of critical minerals, reducing dependence on China, which dominates global production. The deal, if finalized, could have significant economic and geopolitical implications, not only bolstering U.S. industrial capacity but also strengthening ties between Washington and Kyiv at a critical moment in the ongoing conflict.

Trump’s invocation of the DPA underscores the administration’s sense of urgency regarding mineral security. By leveraging federal authority to boost domestic extraction and processing capabilities, the White House aims to safeguard the U.S. supply chain against potential disruptions.

As discussions progress, the extent to which Ukraine’s leadership can balance its economic cooperation with the U.S. against its own strategic interests remains to be seen. However, with Trump signaling an imminent agreement, both nations appear poised to solidify their partnership in the rare earths sector.