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Russia Reportedly Grabs Key Ukrainian Lithium Site, Threatening US Mineral Deal
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![Photo of Ivan Khomenko]( "Photo of Ivan Khomenko")
Russian forces have reportedly taken control of a major lithium deposit near the village of Shevchenko in Ukraine’s Donetsk region, approximately three kilometers from the Dnipropetrovsk region border, according to Le Figaro on June 27.
The reported seizure, confirmed through geolocated combat footage and independent battlefield mapping, would mark the first strategic mineral site to fall into Russian hands since Ukraine signed a critical minerals agreement with the United States in May.
The captured area spans roughly 40 hectares and contains one of Europe’s most promising lithium reserves. Often referred to as “white gold,” lithium is a key component in the production of electric vehicle batteries, electronics, aerospace alloys, and energy storage systems.
Despite a decline in global prices—from a peak of over $80,000 per ton in 2022 to $8,500 per ton in China as of June 2025—the resource remains strategically significant due to increasing demand tied to clean energy transitions and military technologies.
The Shevchenko site had previously attracted interest from foreign investors and was part of Ukraine’s broader strategy to reduce reliance on imported raw materials.
It was also under consideration for development through the newly formed US-Ukraine Investment Fund for Reconstruction and Critical Mineral Partnership, a 50/50 initiative aimed at securing joint mining and infrastructure projects within Ukrainian territory.
However, the ongoing Russian offensive in Donetsk has placed that initiative under pressure. According to Le Figaro and The New York Times, the Shevchenko site was one of the most valuable due to its concentration of battery-grade lithium.
Though the village itself holds limited tactical value, reported control over the deposit may provide Russia with long-term leverage in global industrial supply chains and signal a broader strategy to dominate critical resource corridors in eastern Ukraine.
“If Russian troops go further, capture more and more territory, they will control more and more mineral deposits,” said Mykhailo Zhernov, director of Critical Metals Corp, a US-based company that previously held a license to the Shevchenko site.
Ukraine’s Ministry of Energy and Environment had designated the area as a priority exploration zone. With its reported occupation by Russian forces, the deposit is now outside Kyiv’s regulatory and investment control—casting doubt on the future of joint US-Ukraine development efforts.
The reported seizure also reflects a broader trend in Russia’s war strategy: targeting infrastructure and assets with long-to erm economic value. Analysts suggest that securing critical minerals may be part of a wider effort to constrain Ukraine’s postwar recovery and limit Western access to essential raw materials.
Earlier, on June 16, Ukraine approved its first project under the US-Ukraine minerals deal by opening the Dobra lithium deposit to private investors. Among the top contenders is a US-backed consortium led by TechMe and Ronald S. Lauder.
