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.

Ukraine latest: Zelenskyy to visit US on Friday

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.

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.

Read more
Fact-checking Trump on Zelenskyy
How China is using its minerals as leverage

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.

👉 Follow Trump 100 on your podcast app 👈

Why does Trump want them?

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.

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.

Donald Trump has shared a bizarre AI-generated video on his Truth Social social media platform showcasing what appears to be his vision of Gaza under his proposed plan.

The footage, which the 78-year-old posted without comment, shows the war-ravaged territory before a caption appears: “Gaza 2025… What’s Next?”

It then goes on to show the area transformed into a Middle Eastern paradise with exotic beaches, Dubai-style skyscrapers, luxury yachts and people partying.

It includes a “Trump Gaza” tower and a gigantic, golden statue of the US president – with miniature versions on sale in a souvenir gift shop.

A child is also shown walking in a street, holding a huge, golden balloon of the president’s head.

The video also features the world leader dancing with a scantily clad belly dancer in a bar – and sunbathing and sipping cocktails by a hotel resort pool with Israeli Prime Minister Benjamin Netanyahu.

Elon Musk appears in the footage several times – sitting on a beach eating humous with flatbreads as bearded belly dancers perform on the sand.

The billionaire boss of X, Tesla and SpaceX – who also leads the US Department of Government Efficiency (DOGE) which has been tasked with cutting government spending – is also shown throwing dollar bills in the air for people.

A song written for the video also plays in the background.

The lyrics go: “Donald’s coming to set you free, bringing the light for all to see, no more tunnels, no more fear: Trump Gaza’s finally here.

“Trump Gaza’s shining bright, golden future, a brand new life.

“Feast and dance the deal is done, Trump Gaza number one.”

Sky News has established that the video was first shared online in early February by accounts with no apparent connection to the White House.

Read more from Sky News:
Large bruise on Trump’s hand prompts speculation over health
Trump: Zelenskyy to visit Washington to sign minerals deal

Mr Trump announced his plan – for when the war between Israel and Hamas ends – earlier this year.

It includes relocating two million Gazans to neighbouring Arab countries and developing the territory into the “Riviera of the Middle East“.

He described Gaza as a “demolition site” where “virtually every building is down”.

Laying out his idea of what would happen beyond an Israel-Hamas ceasefire, he proposed: “The US will take over the Gaza Strip and we will do a job with it too.”

He said America would be “responsible for dismantling all of the dangerous unexploded bombs and other weapons on the site”, before it would “get rid of the destroyed buildings”, and “level it out”.

“Everybody I’ve spoken to loves the idea of the United States owning that piece of land, developing and creating thousands of jobs,” he added.

The White House described the proposal as “out-of-the-box” and “visionary” – but it was condemned as the effective “ethnic cleansing” of Palestinians from Gaza.

Hamas described the proposals as “ridiculous and absurd” in a statement from one of its officials.

Egypt, Jordan, and Saudi Arabia, which as fellow Arab nations support the Palestinian cause, also rejected Mr Trump’s plan.

Read more:
What you need to know about Trump’s Gaza plan
Analysis: So outrageous it might be something bigger

There was a mixed reaction to the video in the comments section below.

One person wrote: “I don’t think that’s funny or cool. Sorry. Am I missing something??? I hope it’s a joke a bad joke..”

“I hate this. I love our president, but this is horrible,” said another.

One Truth Social user wrote: “Mr President while I appreciate what you do, is not about you. To God be the glory and the honor, for without Him, you couldn’t have accomplished anything. The statue is a symbol of the antichrist, please humble yourself to God. Jesus is king and only Him.”

“You’re doing great Mr President. But don’t let it get to your head. God put you in that position for His Glory, not yours,” said another.

“Can we transform our US cities to look like this 2025 vision first? Our cities are dumps with ugly buildings and homeless people,” wrote one user.

“Everything looks good, just stay away from these guys,” said another, reposting a screengrab of the bearded belly dancers.

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.

Read more:
Pay back the billions of aid, Trump tells Ukraine
What minerals does Ukraine have and why does Trump want them?

👉 Listen to Sky News Daily on your podcast app 👈

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.