Ukraine appears set to sign a deal that gives the United States access to its mineral supply in exchange for continued military aid.
A Ukrainian government source told Sky News that Kyiv has agreed its terms with Washington.
Mr Trump told reporters on Tuesday that the mineral fund means US taxpayers will “get their money back and then some” for three years of providing weapons against Russia.
The idea of a deal first emerged in September. With concerns swirling Mr Trump would withdraw support if elected, Ukrainian President Volodymyr Zelenskyy reportedly suggested it during a meeting at Trump Tower.
The imminent signing of the deal comes amid strained US-Ukrainian relations since Mr Trump’s return to the White House, with the president branding Mr Zelenskyy a “dictator” and excluding Ukraine from negotiations with Russia.
Here we look at Ukraine’s mineral supply – and why the US wants access to it.
Image: Donald Trump meets Volodymyr Zelenskyy at Trump Tower in September 2024. Pic: AP
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.
Image: Source: Institute for the Study of War/Ministry of Environmental Protection and Natural Resources of Ukraine
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.
Image: A titanium plant in Armyansk, Crimea. File pic: Reuters
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.
Image: A graphite pit in Zavallia, Ukraine. Pic: Reuters
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.
Spreaker
This content is provided by Spreaker, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spreaker cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spreaker cookies.
To view this content you can use the button below to allow Spreaker cookies for this session only.
Donald Trump has not been clear about which minerals he wants from Ukraine, although he referred to the agreement as a “deal on rare earths” on Tuesday.
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.
Image: A chinese rare earth smelting plant spews polluted water
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.
Please use Chrome browser for a more accessible video player
2:02
Why did China restrict mineral exports last year?
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.
Demolition on parts of the White House’s East Wing has begun in order to build Donald Trump’s new ballroom.
On Monday, builders were seen tearing down the facade of the building.
The US President, who insists the $250million (£186m) ballroom will be paid for by himself and donors, said in July it would not interfere with the existing landmark.
The East Wing was built at the beginning of the last century and was last modified in 1942.
Mr Trump said in July: “It will be beautiful. It won’t interfere with the current building. It won’t be – it will be near it, but not touching it. And pays total respect to the existing building, which I’m the biggest fan of. It’s my favourite.”
Mr Trump confirmed on Monday that ground had been broken on the project, despite lacking approval for construction from the federal agency that oversees such projects.
Image: Windows of the complex could be seen being torn down. Pic: Reuters
Photos of the demolition work showed construction equipment tearing into the East Wing façade and windows and other building parts in tatters on the ground.
He added that future parties would start with cocktails in the East Room, before they are taken into the “finest” ballroom in the country.
It will also boast views of the Washington Monument with room for 999 people, he added. Other estimates have claimed it will house some 600 people.
On his social media platform, Truth Social, he said: “Completely separate from the White House itself, the East Wing is being fully modernised as part of this process, and will be more beautiful than ever when it is complete!”
Trump has also claimed on social media that the project would be completed “with zero cost to the American Taxpayer! The White House Ballroom is being privately funded by many generous Patriots, Great American Companies, and, yours truly”.
Earlier this year, Trump said they have “wanted a ballroom” in the White House for 150 years.
“There’s never been a president that was good at ballrooms,” he said. “I’m good at building things and we’re going to build quickly and on time. It’ll be beautiful, top, top of the line.”
Since being in office, Mr Trump has made a number of changes to the White House.
He has hand-picked gold ornamentation for the Oval Office and has redone the Rose Garden.
A former Republican member of Congress, Joe Walsh, called the latest plans an “utter desecration”, and said if he became president would take “a bulldozer” to the ballroom.
If you ever fly to Washington DC, look out of the window as you land at Dulles Airport – and you might snatch a glimpse of the single biggest story in economics right now.
There below you, you will see scattered around the fields and woods of the local area a set of vast warehouses that might to the untrained eye look like supermarkets or distribution centres. But no: these are in fact data centres – the biggest concentration of data centres anywhere in the world.
For this area surrounding Dulles Airport has more of these buildings, housing computer servers that do the calculations to train and run artificial intelligence (AI), than anywhere else. And since AI accounts for the vast majority of economic growth in the US so far this year, that makes this place an enormous deal.
Down at ground level you can see the hallmarks as you drive around what is known as “data centre alley”. There are enormous power lines everywhere – a reminder that running these plants is an incredibly energy-intensive task.
This tiny area alone, Loudoun County, consumes roughly 4.9 gigawatts of power – more than the entire consumption of Denmark. That number has already tripled in the past six years, and is due to be catapulted ever higher in the coming years.
Inside ‘data centre alley’
We know as much because we have gained rare access into the heart of “data centre alley”, into two sites run by Digital Realty, one of the biggest datacentre companies in the world. It runs servers that power nearly all the major AI and cloud services in the world. If you send a request to one of those models or search engines there’s a good chance you’ve unknowingly used their machines yourself.
Image: Inside a site run by Digital Realty
Their Digital Dulles site, under construction right now, is due to consume up to a gigawatt in power all told, with six substations to help provide that power. Indeed, it consumes about the same amount of power as a large nuclear power plant.
Walking through the site, a series of large warehouses, some already equipped with rows and rows of backup generators, there to ensure the silicon chips whirring away inside never lose power, is a striking experience – a reminder of the physical underpinnings of the AI age. For all that this technology feels weightless, it has enormous physical demands. It entails the construction of these massive concrete buildings, each of which needs enormous amounts of power and water to keep the servers cool.
We were given access inside one of the company’s existing server centres – behind multiple security cordons into rooms only accessible with fingerprint identification. And there we saw the infrastructure necessary to keep those AI chips running. We saw an Nvidia DGX H100 running away, in a server rack capable of sucking in more power than a small village. We saw the cooling pipes running in and out of the building, as well as the ones which feed coolant into the GPUs (graphic processing units) themselves.
Such things underline that to the extent that AI has brainpower, it is provided not out of thin air, but via very physical amenities and infrastructure. And the availability of that infrastructure is one of the main limiting factors for this economic boom in the coming years.
According to economist Jason Furman, once you subtract AI and related technologies, the US economy barely grew at all in the first half of this year. So much is riding on this. But there are some who question whether the US is going to be able to construct power plants quickly enough to fuel this boom.
Please use Chrome browser for a more accessible video player
2:08
Is Trump’s AI plan a ‘tech bro’ manifesto?
For years, American power consumption remained more or less flat. That has changed rapidly in the past couple of years. Now, AI companies have made grand promises about future computing power, but that depends on being able to plug those chips into the grid.
Last week the International Monetary Fund’s chief economist, Pierre-Olivier Gourinchas, warned AI could indeed be a financial bubble.
He said: “There are echoes in the current tech investment surge of the dot-com boom of the late 1990s. It was the internet then… it is AI now. We’re seeing surging valuations, booming investment and strong consumption on the back of solid capital gains. The risk is that with stronger investment and consumption, a tighter monetary policy will be needed to contain price pressures. This is what happened in the late 1990s.”
‘The terrifying thing is…’
For those inside the AI world, this also feels like uncharted territory.
Helen Toner, executive director of Georgetown’s Center for Security and Emerging Technology, and formerly on the OpenAI board, said: “The terrifying thing is: no one knows how much further AI is going to go, and no one really knows how much economic growth is going to come out of it.
“The trends have certainly been that the AI systems we are developing get more and more sophisticated over time, and I don’t see signs of that stopping. I think they’ll keep getting more advanced. But the question of how much productivity growth will that create? How will that compare to the absolutely gobsmacking investments that are being made today?”
Whether it’s a new industrial revolution or a bubble – or both – there’s no denying AI is a massive economic story with massive implications.
For energy. For materials. For jobs. We just don’t know how massive yet.
Nicholas Rossi, an American man who faked his death and fled to Scotland to escape rape charges, has been jailed for at least five years.
The sentence handed down to the 38-year-old is the first of two he faces after being convicted separately in August and September of raping two women in 2008.
Utah has “indeterminate sentencing” – meaning jail terms handed down are in a range of years rather than a fixed number, with release dates set by the state’s parole board.
Image: Nicholas Rossi appearing in court in August. Pic: AP
During August’s three-day trial, Rossi’s accuser and her parents took the stand – with the victim telling the court that he left a “trail of fear, pain, and destruction” behind him.
“This is not a plea for vengeance. This is a plea for safety and accountability, for recognition of the damage that will never fully heal,” she said.
Brandon Simmons, a prosecutor in the case, alleged Rossi “uses rape to control women” and posed a risk to community safety.
Rossi – whose legal name is Nicholas Alahverdian – maintained his innocence during the sentencing hearing. In a soft, raspy voice, he said: “I am not guilty of this. These women are lying.”
He was first identified in 2018 after a decade-old DNA rape kit was examined.
How Rossi was caught
But in February 2020 – months after he was charged in one of the cases – an online obituary claimed he had died of non-Hodgkin lymphoma.
Rossi was arrested in Scotland the following year while being treated for COVID, after hospital staff recognised his distinctive tattoos – including the crest of a university he never attended.
Please use Chrome browser for a more accessible video player
1:37
Jan 2024: Extradited man denies identity to US court
One of his victims had been recovering from a traumatic brain injury when she responded to a personal advert that Rossi had posted on Craigslist.
They began dating and were engaged within a couple of weeks – and according to her testimony, Rossi had asked her to pay for dates and car repairs, lend him money, and take on debt for their rings.
She told the court that Rossi raped her in his bedroom one night after she drove him home – and went to police years later after discovering that another woman in Utah had come forward with accusations.
Rossi is due to be sentenced for the second conviction in November.