US, Ukraine agree on rare earth minerals deal to 'intertwine' two economies

Published On Feb 26, 2025, 4:44 PM

Ukraine and the U.S. have finalized a deal regarding the extraction and processing of Ukraine's rare earth minerals, a sector critical for technology and defense applications. The agreement aims to strengthen the economies of both nations while reducing reliance on Chinese processing. Ukraine possess substantial reserves of minerals such as titanium and lithium. The deal is part of broader negotiations and aid following the ongoing conflict in Ukraine, and could also serve as a model for future U.S. agreements with other countries.

Stock Forecasts

BLK

Positive

The deal enhances Ukraine's economic prospects and could lead to significant U.S. investments in mining and processing sectors, especially as global demand for rare earth minerals continues to grow. Companies like BlackRock and JPMorgan have already shown interest in investing in Ukraine's reconstruction.

JPM

Positive

With heightened involvement in Ukraine, JPMorgan is likely to benefit from increased investment activities, boosted by this deal which positions them favorably for future growth in emerging markets.

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