Doctor of Geological Sciences explained why Trump should not rely on Ukrainian lithium.

Ukraine has lithium reserves, but their extraction is unprofitable

Ukraine has lithium reserves, but their extraction is unprofitable due to a number of difficulties. This was stated by Professor Volodymyr Mykhailov.

According to the professor, Ukrainian lithium deposits are located at a depth of 200-250 meters, which makes extraction more expensive. Compared to the deposit in Chile, where lithium is located on the surface, extraction in Ukraine costs more. For deposits where other metals are extracted, mines need to be built, further increasing the cost of extraction. This may negatively affect the investment attractiveness of the deposit.

The main factors that deter investors from investing in the development of deposits are war and the lack of established legislation. The professor believes that it is necessary to improve the legislative framework to protect the property rights of investors.

Volodymyr Mykhailov also noted that information about strategic minerals in Ukraine remains closed even with international interest. Furthermore, only 20% of open deposits have been studied in Ukraine.

The published estimate of the value of Ukrainian mineral resources at $14.8 trillion is exaggerated, according to the professor.

It is worth noting that Ukraine has agreed to a deal with the USA on the extraction of mineral resources. The terms of the agreement have been eased. After that, Kyiv is ready to sign the document.

It is known that the Cabinet of Ministers will consider the agreement on rare earth metals with the USA on February 26. The official name of the agreement is 'On the establishment of the rules and conditions of the investment fund for the reconstruction of Ukraine'. The main provisions of the agreement have already been agreed upon.