The United States and Ukraine have signed a landmark agreement to strengthen cooperation on the exploration and development of critical mineral resources, a move that could help reduce global reliance on Chinese-dominated supply chains for rare earths and other strategic materials.

According to a press release by the U.S. Department of State, the Memorandum of Understanding (MoU) was signed in Kyiv by U.S. Special Presidential Envoy for Climate John Kerry and Ukraine’s Minister of Energy Herman Halushchenko.

The agreement focuses on collaboration in areas such as geological surveys, mining technology, environmental practices, and investment in mineral extraction infrastructure.

The Biden administration has prioritized securing alternative sources of critical minerals — including lithium, cobalt, and rare earth elements — vital for clean energy technologies and defense applications. Ukraine, with its vast but underdeveloped mineral wealth, is seen as a promising partner.

“By working together, the United States and Ukraine can advance sustainable mineral development that supports our clean energy future and strengthens Ukraine’s economy,” Kerry stated, as reported by Reuters.

Ukrainian officials hailed the agreement as a step toward deeper economic cooperation with the West and a way to attract more foreign investment in the face of ongoing reconstruction efforts following Russia’s invasion.

In a statement quoted by Bloomberg, Minister Halushchenko emphasized the significance of the partnership: “Ukraine has the resources. The U.S. has the technology and expertise.

Together, we can build a resilient, transparent, and sustainable supply chain.”

The agreement is part of broader U.S. efforts to diversify global mineral supply chains away from China, which currently processes over 80% of the world’s rare earths.

It also supports Ukraine’s ambition to become a key player in Europe’s raw materials strategy.

The European Union and other allies have expressed interest in supporting similar projects in Ukraine, underlining a growing international effort to secure critical resources needed for the green transition.