Putin dangles rare earths deal for Trump as Zelenskyy heads to US, China tightens control

Putin’s proposal comes as the US and Ukraine finalise a minerals deal expected to be signed during Ukrainian President Volodymyr Zelenskyy’s visit to Washington on February 28.

President Vladimir Putin has offered to collaborate with the United States to explore Russia's vast rare earth metal deposits, claiming his country's reserves were bigger than those of Ukraine.

In a televised interview, Putin expressed Russia’s readiness to work with "foreign partners, including Americans," to develop these resources in Russia and its newly occupied territories in Ukraine.

“Quite broad prospects are opening up here. The Americans need rare earth minerals. We have a lot of them,” Kremlin spokesperson Dmitry Peskov was quoted as saying by Reuters.

Rare earth metals are critical for industries such as defence, consumer electronics, and clean energy, making their supply a geopolitical priority for many nations.

Why is Russia making this offer?

Putin’s proposal comes as the US and Ukraine finalise a minerals deal expected to be signed during Ukrainian President Volodymyr Zelenskyy’s visit to Washington on February 28.

The agreement is crucial for Ukraine as it seeks continued American support in its war, now in its fourth year, against Russia.

US President Donald Trump acknowledged Russia’s substantial rare earth deposits, the Reuter report said. "I'd like to buy minerals on Russian land too. If we can, the rare earth. They have very good rare earth also, they both do (Russia and Ukraine)," he said.

Rare earths are a group of 17 metals used to make magnets that turn power into motion for electric vehicles, mobile phones, missile systems and other electronics, the Reuters report said.

This discussion is significant given China’s dominance in rare earth metals, which controls 95 percent of global production, a Reuters report said, citing US Geological Survey (USGS) data.

Russia’s rare earth industry: Key facts

Reserves: Russia holds the world's fifth-largest reserves of rare earth metals, estimated at 3.8 million metric tons by USGS. However, Russia’s own estimates suggest a much higher figure of 28.7 million tons.

Challenges: Despite abundant reserves, Russia faces low domestic demand and strong competition from China, which has hindered industry growth.

Production goals: Russia aims to become one of the top five global producers of rare earth metals, targeting a 12 percent market share by 2030.

Who mines rare earths in Russia?

Russia’s rare earth industry is dominated by state-backed enterprises. According to Reuters, Rosatom, Russia’s nuclear energy corporation, took over the country’s only producer of finished rare earth metals, the Solikamsk Magnesium Plant, in 2023.

The Lovoozerskoye deposits in the Murmansk region, controlled by Rosatom, supply raw materials for processing.

Current output is about 2,600 tons per year, just 1 percent of global production.

Russia is focusing on reviving its rare earth extraction expertise, which weakened after the Soviet Union’s collapse. Last year, Putin criticised the slow development of Tomtor, the country’s largest rare earth deposit in Siberia, pushing for either more private investment or state intervention.