Ukraine has agreed terms with the United States on a crucial minerals deal, a Ukrainian government source has told Sky News.

There has been no confirmation from the US side yet but Donald Trump said on Monday evening that his Ukrainian counterpart “would like to sign the minerals deal with me”.

The accord, once signed, could unlock a new long-term partnership between Kyiv and Mr Trump‘s White House after weeks of increasingly tense exchanges.

The source said there was a plan for the document to be signed “very soon”.

This could even be during a face-to-face meeting between Ukrainian President Volodymyr Zelenskyy and Mr Trump.

The US president told reporters on Tuesday evening that his Ukrainian counterpart is “coming to visit on Friday”.

He added: “We have pretty much negotiated our deal on rare earths.”

A Ukrainian government source has also said Mr Zelenskyy will meet with Mr Trump in Washington on Friday and that the meeting was proposed by the American side.

Meanwhile, Ukrainian officials have said Kyiv has agreed a framework for an economic deal with the US which will see them trade rights to rare minerals in exchange for continued aid.

The deal sets out the terms to create a new fund to invest in Ukraine’s minerals, rare earth materials and other valuable natural resources.

It no longer contains an initial demand by the United States for a right to $500bn (£394bn) in potential revenue from the resources.

Mr Zelenskyy had previously described such a high price as not being a “serious” conversation.

Mr Trump, however, views the minerals transaction with Ukraine as a fair way to recoup the billions of dollars that the US has given Kyiv – via weapons and financial support – to assist the armed forces in their fight against Russia’s full-scale invasion over the past three years.

The document also does not provide a commitment from Washington to give security guarantees to Ukraine in the wake of any ceasefire deal with Vladimir Putin – something that Kyiv desperately needs and has been asking for.

More granular details about the new partnership are expected to be fleshed out in coming discussions.

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The two sides have “agreed on a framework agreement on how to create a fund that will be filled with a share of minerals” and other natural resources, the government source said, speaking on condition of anonymity.

“This is a political step to ensure that resource revenues are used for the security and reconstruction of Ukraine.”

The fund would comprise US money that would be invested in Ukrainian natural resources, with profits shared between Washington and Kyiv, it is understood.

The Financial Times first reported on the agreement being reached. It said the final version of the deal was dated 24 February.

“The minerals agreement is only part of the picture. We have heard multiple times from the US administration that it’s part of a bigger picture,” Olha Stefanishyna, Ukraine’s deputy prime minister and justice minister who has led the negotiations, told the newspaper on Tuesday.

The development comes after Mr Trump shocked European leaders last week by calling Mr Zelenskyy a “dictator with no elections”.

He added that the Ukrainian president “better move fast or he is not going to have a country left” after Mr Zelenskyy had accused him of living in a Russian-made “disinformation space”.

French President Emmanuel Macron flew to Washington to meet with Mr Trump on Monday for talks on Ukraine amid fragile relations between the US and Europe.

Meeting in the White House on the third anniversary of Russia’s war in Ukraine, the French president said he and Mr Trump “made substantive steps forward during our discussions”.

It comes as UK Prime Minister Sir Keir Starmer prepares to meet with Mr Trump at the White House on Thursday.

Mr Starmer and Mr Macron spoke on the phone on Tuesday and “agreed that President Trump’s leadership in working towards a durable peace in Ukraine was welcome”, a Downing Street spokesperson continued.

Donald Trump is ramping up pressure on his Ukrainian counterpart to sign away up to 50% of its mineral supplies.

Amid concerns Mr Trump would withdraw aid if elected, during a meeting at Trump Tower in September, Ukrainian President Volodymyr Zelenskyy reportedly proposed a US stake in Ukrainian minerals in exchange for more weapons.

But since Mr Trump’s return to the White House, US-Ukrainian relations have become increasingly strained, with him branding Mr Zelenskyy a “dictator” and excluding Ukraine from negotiations with Russia.

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A Ukrainian source told Sky News that Mr Zelenskyy is “not ready” to sign the US agreement due to a “number of problematic issues”, with a leaked draft claiming to ask for 50%. French President Emmanuel Macron has lent his support to the idea.

Here we look at Ukraine’s mineral supply – and why the US wants access to it.

Which minerals does Ukraine have?

Before Russia’s invasion in February 2022, minerals made up 6.1% of Ukraine’s GDP (gross domestic product) and 30% of its exports.

It is home to various ‘critical’ minerals, so called for their use in technology manufacturing, defence systems, and green energy, with examples including copper, nickel, lithium, and titanium.

According to the European Commission, in 2019 Ukraine supplied 7% of global titanium, which is used for building nuclear power plants and planes.

Similarly, it is believed to have more lithium (used to make batteries) than any other European country – a suspected 500,000 tonnes.

Before Russia’s invasion, it was also responsible for a fifth of global graphite, which is a key material for nuclear power stations and electric vehicle batteries.

Other raw materials in good supply include coal, iron ore, and manganese.

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Pre-war figures are the most reliable, as up to 40% of Ukrainian metallic minerals are now in areas occupied by Russia – namely the Donbas and neighbouring eastern regions.

For example, two of Ukraine’s lithium deposits are under Russian control – Zaporizhzhia and Donetsk.

Rare earth elements

Rare earth elements (REE) are a group of 17 exotic minerals used to make everything from smartphones and electronic devices, to electric vehicles, wind turbines, and weapons systems.

Examples include europium, a material for control rods at nuclear power plants, and gadolinium, used to make the magnets inside mobile phones – as well as holmium, ytterbium, and dysprosium.

They are not strictly rare – but their extraction and storage are highly energy-intensive.

With the details of war-torn Ukraine’s mineral supplies uncertain – it is not clear which REEs are present there and how much there are of them.

But in a pre-war assessment of 109 critical mineral deposits across the country by the Kyiv School of Economics, three were reported to contain REEs.

Ukrainian mineral data, seen by Reuters, has also cited cerium, neodymium, erbium, yttrium, and lanthanum.

Why does Trump want them?

Donald Trump has not been clear about which minerals he wants from Ukraine.

And as Sky’s economics and data editor Ed Conway says, there are far greater supplies of lithium, graphite, and titanium elsewhere, including in the US.

But what is far more certain is the role China has to play in Mr Trump’s demands.

As the biggest manufacturer in the world, China processes more REEs than any other country – with its deposits representing between 50% and 75% of global supply, according to estimates.

As a result, both the US and Europe are trying to reduce their dependency on Beijing.

In December as Mr Trump prepared to return to office, China banned the export of some REEs to the US. Under Joe Biden’s administration, it had already restricted its US mineral exports.

In response on 1 February, the Trump administration announced 10% tariffs on all Chinese imports.

Beyond the trade war with China, REEs and critical minerals are fundamental to the global green energy transition.

According to the World Meteorological Organisation, to meet net-zero targets by 2030, we will need three times as much copper, lithium, nickel, and cobalt.

This will mean a further 50 lithium, 60 nickel, and 17 cobalt mines globally.

Emmanuel Macron has said a peace deal with Russia “must not mean a surrender of Ukraine” – as Donald Trump claimed Vladimir Putin’s forces “want to end this war”.

The US and French presidents met amid fragile relations between America and Europe and after Mr Trump launched a verbal attack on Ukrainian President Volodymyr Zelenskyy.

Meeting in the White House on the third anniversary of Russia’s war in Ukraine, the French president said he and Mr Trump “made substantive steps forward during our discussions”.

Mr Macron told reporters that Europe should do more to bolster defence in the continent.

However, he stressed Russia “is the aggressor” in the conflict and added: “President Putin violated the peace.”

Peace must allow Kyiv ‘sovereignty’

The French leader then said: “We want peace, he wants peace. We want peace swiftly, but we don’t want an agreement that is weak.”

“This peace must not mean a surrender of Ukraine or a ceasefire without guarantees,” he added. “It must allow for Ukrainian sovereignty and allow Ukraine to negotiate with other stakeholders regarding the issues that affect it.

“It is also a country in which we need to shoulder our responsibilities so that we ensure security and stability for Ukraine and for the entire region.

“For Europeans, this is an existential issue.”

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‘Get this war stopped’

At a news conference following the talks, Mr Macron said he “fully believes” there is a path forward in negotiations.

He also agreed “there is good reason for President Trump to re-engage with President Putin” – a week after the leaders had a 90-minute-long phone call.

Mr Trump added Russia would accept European troops in Ukraine as part of peacekeeping efforts, adding: “I specifically asked him (Putin) that question. He has no problem with it.”

He told reporters: “When I got here, one of the first calls I made was to Putin and it was made with great respect. They want to end this war.”

Mr Trump then explained he wants to “get this war stopped,” whether that’s through a ceasefire or a direct agreement – but when asked if Ukraine should give up territory as part of any deal, he said: “We’ll see.”

The news conference came as Mr Putin said he is ready to discuss Russia cutting its defence budget alongside the US, saying a mutual drop of 50% would be a “good idea”.

The Russian president also touted a possible economic deal with the US, offering talks on a deal for its own rare earth metal supplies and for the sale of aluminium to American firms.

The US president is due to meet Sir Keir Starmer on Thursday, after the prime minister warned Mr Trump that a bad peace deal would be a “disaster for everyone”.

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Earlier on Monday, Mr Trump said he hoped Mr Zelenskyy would visit the US to sign a deal on Ukraine’s rare earth minerals soon.

Just last week, in a bitter exchange of words, Mr Trump called Ukraine’s leader a “dictator” and said he “better move fast or he is not going to have a country left” after Mr Zelenskyy had accused him of living in a Russian-made “disinformation space”.