Kyiv/Moscow, August, 2025 — In a major development in the ongoing Russia-Ukraine conflict, Russian forces have taken control of Ukraine’s second-largest lithium deposit, escalating global concerns over the control of critical resources essential for the clean energy and electric vehicle (EV) industries.
The captured site, whose exact location remains undisclosed due to security reasons, is one of four major lithium reserves in Ukraine. This strategic move by Russia follows the earlier seizure of the Shevchenko deposit in the Donetsk region and the first takeover of the Kruta Balka site in Zaporizhzhia back in 2022.
According to Ukrainian mining and defense officials, this latest seizure not only weakens Ukraine’s economic leverage in the critical minerals sector but also jeopardizes the U.S.-Ukraine minerals cooperation agreement signed in May 2025. The deal was expected to boost Ukrainian mining capabilities and secure non-Chinese lithium supplies for Western EV and battery manufacturers.
A Critical Blow to Global Lithium Supply Chains
Lithium is a key component in lithium-ion batteries used in everything from smartphones and laptops to electric vehicles and renewable energy storage systems. Ukraine’s deposits were seen as vital alternatives in a market increasingly dominated by China and, to some extent, South America and Australia.
The capture of this second major site now gives Russia significant influence over one of Europe’s few substantial lithium sources. Experts suggest that this may further destabilize already fragile global supply chains and increase Western dependence on unfriendly or unstable suppliers.
“Control of lithium is not just about economics—it’s about geopolitical power,” said Elena Petrov, a mineral economist at the European Centre for Strategic Resources. “This move by Russia solidifies its strategy of resource warfare, adding critical minerals to the list of energy blackmail tools.”
Implications for Clean Energy and EV Industries
The seizure comes at a time when global demand for lithium is soaring. The International Energy Agency (IEA) has projected lithium demand to grow by over 400% by 2030 due to the global shift towards electric vehicles and green energy infrastructure.
With Ukraine now holding only two of its four major lithium reserves—both located in the relatively safer central region—the pressure on Western governments and manufacturers to diversify their lithium sources has intensified.
In May, the U.S. had agreed to invest in exploration and development of Ukraine’s critical mineral sector, with a focus on rare earths and lithium. The status of that agreement is now uncertain, given the growing Russian military presence near the remaining reserves.
International Reactions and Future Outlook
While the Ukrainian government has condemned the seizure and vowed to reclaim lost territory, international analysts are warning of a long-term strategic shift in global mineral control.
“This is not just a battlefield win for Russia—it’s a win in the global energy economy,” said John Kendrick, senior analyst at Global Resources Watch. “If this trend continues, it could derail the West’s clean energy transition plans.”
In response, the European Union is reportedly considering new sanctions targeting Russian mining entities, while the U.S. Department of Energy is pushing to fast-track domestic lithium projects and strengthen ties with alternate suppliers like Argentina, Canada, and Australia.
As the conflict grinds on, Ukraine’s ability to hold onto its remaining mineral assets may determine not just its economic future—but also the future of clean energy efforts around the globe.
Sources:
- Reuters
- The Kyiv Independent
- European Centre for Strategic Resources
- U.S. Department of Energy briefing, May 2025
- IEA Critical Minerals Outlook 2024
