Russian troops have taken over the site of one of Ukraine’s most valuable lithium deposits near the village of Shevchenko, Donetsk Oblast, as Russia ramps up its summer offensive. Ukrainian troops control territories near the site, but the deposit is now under Russian occupation, according to Roman Pohorilyi, founder of the open-source mapping project Deep State Map.
The Kyiv Independent reports that the deposit’s capture comes just two months after Ukraine signed a landmark critical minerals agreement with the U.S., aimed at attracting investment to its strategic resources, including its untapped lithium reserves. Despite the apparent loss, investor Serhii Fursa from Dragon Capital claims the agreement is unlikely to be impacted, as the site was always perceived as high-risk.
Ukraine’s military spokesperson, Viktor Trehubov, noted that fighting is ongoing around the village, with Ukrainian forces on the western outskirts and Russian forces on the eastern side. The deposit, located less than two kilometers east of the village, is part of a larger strategic initiative to open up Ukraine’s lithium resources to private investors under the U.S. deal.
According to the Kyiv School of Economics, Ukraine holds one-third of the European Union’s lithium reserves and 3% of global reserves. Lithium, used in electric vehicle batteries, is a key focus of the U.S. agreement signed on April 30, which did not include security guarantees for Ukraine, a point of contention during negotiations.
Kyiv’s plan to open the Dobra lithium field to private investors represents the first major step under the agreement, despite the recent losses. Although the Shevchenko deposit contains 90% spodumene, a mineral rich in lithium, it was never mined and was last claimed by European Lithium, which cited its proximity to the front line.
The New York Times reported the capture of the deposit on June 27, but Ukrainian officials initially disputed the claim, stating that Russian forces had not yet officially captured the village. However, the strategic importance of the deposit remains clear, as it is now part of an ongoing effort to boost Ukraine’s position in the global lithium market.
While the loss of the site raises questions about the practicality of the agreement’s goals, Ukrainian officials and investors remain optimistic about the long-term prospects of the project, despite the immediate military setbacks. The agreement continues to serve as a cornerstone of Ukraine’s economic strategy, even in the face of ongoing conflict.