Before Invasion, Ukraine’s Lithium Wealth Was Drawing Global Attention

There is vast, undiscovered mineral wealth that could hold the keys to a lucrative, clean-energy future for the Eastern European nation.

The eastern region of the country holds close to 500,000 tons of lithium oxide, which is critical to the production of the batteries that power electric vehicles. If it holds, it would make Ukraine's lithium reserves one of the largest in the world.

The Russian invasion came at the same time as Ukraine was trying to position itself as a major player in the clean energy transition, an evolution for a country that built its economy on coal, iron, titanium and other legacy industries.

Last year, Ukraine began to auction off exploration permits to develop its minerals. The shift away from fossil fuels that scientists say is necessary to ward off the worst consequences of climate change is dependent on natural resources.

Roman Opimakh, head of the State Geological Service of Ukraine, said last May at a flagship presentation for global investors that the move holds a strategic importance for the establishment of Ukraine on the global stage.

The potential for lithium production inUkraine had begun to attract global attention. European Lithium, an Australian firm, said in November that it was in the process of securing rights to two promising lithium deposits in eastern Ukraine and the center of the country. The company said at the time that it wanted to become Europe's largest supplier of lithium.

According to news media reports, a Chinese company applied for the rights to the lithium deposits in Kirovograd in the same month. The companies did not respond to requests for comment.

As electric vehicles take off, demand for batteries is expected to increase, and that will cause automakers to scramble for enough supply. Over the past year, the price of lithium has risen by as much as 600 percent.

There are growing concerns that the world's supply of lithium, as well as other minerals critical to the clean energy transition, are controlled by a few countries. Three-fourths of the global output of rare earths are accounted for by China, the Democratic Republic of Congo and Australia. 17 military experts wrote a letter to Lloyd Austin, the United States Secretary of Defense, to highlight the need for the United States to shore up its access to minerals.

It may not be the motivation for the invasion, but there is a reason why Ukraine is so important to Russia. Rod Schoonover, a scientist and former director of environment and natural resources at the National Intelligence Council, said that the mineral base is alongside the nation's agricultural production.