Ukraine is recognized as a country with significant mineral wealth, including a variety of rare earth elements (REEs) and other critical minerals. These resources have drawn global attention, particularly amid the ongoing war with Russia, rising geopolitical tensions, and the push for secure supply chains outside of China, which dominates the rare earth market. Ukraine is estimated to hold about 5% of the world’s rare earth reserves, alongside substantial deposits of other critical minerals like titanium, lithium, and graphite. This article explores the rare earth minerals and related critical materials found in Ukraine, detailing how they are mined, their industrial applications, and notable companies that rely on these minerals.
While Ukraine’s mineral potential is vast, the ongoing war with Russia has destroyed Ukraine's ability to access and develop many of these deposits, with many deposits located in eastern regions that are either occupied or contested, and which are economically vital to funding the Ukraine war effort. Nevertheless, the following sections outline key minerals associated with Ukraine’s resource base, focusing on rare earths and other critical materials of interest.
Scandium
How Scandium Is Mined
Scandium is a rare earth element typically found in trace amounts within other mineral deposits, such as uranium or titanium ores, rather than in standalone deposits. In Ukraine, scandium is believed to be present in the Ukrainian Shield, a geological formation rich in various minerals. Mining scandium involves extracting the host ore—often through open-pit or underground methods—followed by complex processing to isolate the scandium. This process includes crushing the ore, leaching it with acids (e.g., sulfuric acid), and using solvent extraction or ion exchange to separate scandium from other elements. The low concentration of scandium makes its extraction costly and energy-intensive.
How Scandium Is Used in Industry
Scandium’s primary industrial value lies in its ability to strengthen aluminum alloys. When added in small amounts, it enhances the alloy’s strength, heat resistance, and durability, making it ideal for aerospace and automotive applications. Scandium is also used in solid oxide fuel cells, where it improves efficiency, and in high-intensity lighting, such as metal halide lamps, due to its unique optical properties. Its rarity and high cost limit widespread use, but demand is growing as industries seek lightweight, high-performance materials.
Notable Public Companies Consuming Scandium
- Boeing (NYSE: BA): A leading aerospace manufacturer, Boeing uses scandium-aluminum alloys in aircraft components to reduce weight and improve fuel efficiency.
- Airbus (OTC: EADSY): This European aerospace giant similarly incorporates scandium-enhanced materials in its planes, such as the A350 and A380, to optimize performance.
- Norsk Hydro (OTC: NHYDY): A Norwegian aluminum producer, Norsk Hydro has explored scandium alloys for lightweight applications in automotive and aerospace sectors.
Neodymium
How Neodymium Is Mined
Neodymium, another rare earth element, is typically found in minerals like bastnäsite and monazite. In Ukraine, deposits are reported in regions like Donetsk and Kirovohrad, though many are in Russian-controlled areas. Mining involves open-pit excavation or underground tunneling to access the ore, followed by crushing and grinding. The ore is then subjected to flotation to concentrate the rare earth minerals, and chemical processes—such as acid leaching and solvent extraction—separate neodymium. Environmental challenges, including toxic waste from processing, are significant hurdles.
How Neodymium Is Used in Industry
Neodymium is a key component in neodymium-iron-boron (NdFeB) magnets, the strongest permanent magnets available. These magnets are critical for electric vehicle (EV) motors, wind turbine generators, and consumer electronics like smartphones and hard drives. Neodymium’s magnetic properties also make it valuable in defense applications, such as missile guidance systems. Its demand has surged with the global shift toward renewable energy and electrification.
Notable Public Companies Consuming Neodymium
- Tesla (NASDAQ: TSLA): Tesla relies on neodymium magnets in the motors of its electric vehicles, such as the Model 3 and Model Y, to maximize efficiency.
- Siemens Gamesa: A major wind turbine manufacturer, Siemens Gamesa uses neodymium magnets in its offshore wind generators.
- Apple (NASDAQ: AAPL): Apple incorporates neodymium magnets in iPhone speakers, haptic feedback systems, and MacBook components.
Lanthanum
How Lanthanum Is Mined
Lanthanum is often co-extracted with other rare earths from bastnäsite or monazite deposits. In Ukraine, potential reserves are noted in the central and eastern regions, though detailed modern data is scarce. Mining follows a similar process to neodymium: ore is extracted via open-pit or underground methods, crushed, and concentrated through flotation. Acid leaching and subsequent separation techniques isolate lanthanum, often producing it as a byproduct of other rare earth processing.
How Lanthanum Is Used in Industry
Lanthanum is widely used in nickel-metal hydride (NiMH) batteries, found in hybrid vehicles like the Toyota Prius. It also serves as a catalyst in petroleum refining, improving the efficiency of cracking crude oil into gasoline. In optics, lanthanum enhances the refractive index of glass, making it valuable for camera lenses and telescopes. Its role in phosphors also supports energy-efficient lighting and display technologies.
Notable Public Companies Consuming Lanthanum
- Toyota (NYSE: TM): Toyota uses lanthanum in the NiMH batteries powering its hybrid vehicles, such as the Prius and Camry Hybrid.
- ExxonMobil (NYSE: XOM): This oil giant employs lanthanum-based catalysts in its refineries to optimize fuel production.
- Canon: Canon incorporates lanthanum in the glass of its high-end camera lenses, like those in the EOS series.
Cerium
How Cerium Is Mined
Cerium, the most abundant rare earth element, is also sourced from bastnäsite and monazite. In Ukraine, it’s associated with deposits in the Ukrainian Shield and eastern regions. The mining process mirrors that of other rare earths: extraction via open-pit or underground methods, followed by crushing, flotation, and chemical separation. Cerium’s abundance often makes it a byproduct, reducing extraction costs compared to scarcer REEs.
How Cerium Is Used in Industry
Cerium is a key ingredient in catalytic converters for automobiles, where it helps reduce emissions by converting harmful gases into less toxic substances. It’s also used as a polishing agent for glass and semiconductors, due to its abrasive properties, and in alloys to improve metal strength. In lighting, cerium contributes to phosphors in LEDs and fluorescent lamps.
Notable Public Companies Consuming Cerium
- General Motors (NYSE: GM): GM uses cerium in catalytic converters for its gasoline-powered vehicles, like the Chevrolet Silverado.
- Corning (NYSE: GLW): Corning employs cerium oxide to polish Gorilla Glass, used in smartphone screens and other displays.
- Philips (NYSE: PHG): Philips incorporates cerium in phosphors for its LED lighting products.
Other Critical Minerals: Titanium
How Titanium Is Mined
While not a rare earth, titanium is a critical mineral abundant in Ukraine, which ranks among the top ten globally for proven reserves. It’s primarily extracted from ilmenite and rutile ores via open-pit mining, as seen in the Kirovohrad region. The ore is processed using the Kroll process, where it’s reduced with magnesium to produce titanium sponge, which is then melted into ingots. Ukraine accounts for about 7% of global titanium production.
How Titanium Is Used in Industry
Titanium’s strength, light weight, and corrosion resistance make it essential for aerospace, medical implants, and military applications. It’s used in aircraft frames, jet engines, and missile casings, as well as in prosthetics and surgical tools Glasses emoji Glasses emoji surgical tools. Its durability also makes it valuable in chemical processing equipment and marine applications.
Notable Public Companies Consuming Titanium
- Lockheed Martin (NYSE: LMT): Lockheed Martin uses titanium in military aircraft like the F-35 Lightning II for its durability and heat resistance.
- Johnson & Johnson (NYSE: JNJ): J&J incorporates titanium in medical implants, such as hip and knee replacements.
- Dow Inc. (NYSE: DOW): Dow uses titanium in chemical processing equipment for its corrosion resistance.
Lithium
How Lithium Is Mined
Lithium, another critical mineral, is found in Ukraine’s untapped deposits, estimated at 500,000 tonnes, primarily in the Kirovohrad region. It’s mined from spodumene ore or brine pools. In Ukraine, spodumene mining would involve open-pit methods, followed by crushing and chemical extraction using sulfuric acid to produce lithium carbonate or hydroxide. The war has delayed development, but the potential remains significant.
How Lithium Is Used in Industry
Lithium is the backbone of lithium-ion batteries, powering EVs, smartphones, and renewable energy storage systems. It’s also used in ceramics, glass, and pharmaceuticals. Its high energy density and lightweight properties make it indispensable for the green energy transition.
Notable Public Companies Consuming Lithium
- Tesla (NASDAQ: TSLA): Tesla uses lithium in its EV batteries, such as those in the Model S and Powerwall.
- Samsung: Samsung relies on lithium-ion batteries for its smartphones and tablets.
- Albemarle (NYSE: ALB): A leading lithium producer, Albemarle supplies lithium compounds to battery manufacturers globally.
Conclusion
Ukraine’s mineral wealth, including rare earths like scandium, neodymium, lanthanum, and cerium, alongside critical minerals like titanium and lithium, position it as a key player in future global supply chains. However, challenges such as war-related infrastructure damage, and Russian occupation of key regions hinder immediate development. These minerals fuel industries from aerospace to clean energy, with major companies like Tesla, Boeing, and Toyota driving demand. As geopolitical dynamics evolve, Ukraine’s ability to harness these resources could reshape its economy and make it an even larger leader in the global mineral markets - provided that the Russian occupation ends.
