On Tuesday, U.S. President Donald Trump announced that Washington had negotiated a critical minerals agreement with Kyiv. Ukrainian President Volodymyr Zelensky will visit later this week to finalise the deal.

The agreement comes at a time of strained relations between the two nations, as the U.S. aligns with Moscow in efforts to end the Ukraine-Russia war. Trump had previously insisted that Ukraine grant access to rare earth minerals as compensation for the billions of dollars in wartime aid it received under Joe Biden.

For Kyiv, the deal is vital in securing continued U.S. support against Russia, strengthening ties with the Trump administration, and ensuring long-term American security commitments. The White House sees this as an initial step toward negotiating a ceasefire with Russia.

Trump informed reporters, "We have pretty much negotiated our deal on rare earths," while also mentioning that a peacekeeping force would likely be needed in Ukraine if a settlement to end the conflict is reached. However, he did not provide further details about the agreement.

The agreement comes after a tense exchange between Trump and Zelensky. Last week, Trump called Zelensky an unpopular "dictator" and urged him to reach a swift peace agreement, warning that failure to do so could put Ukraine’s survival at risk.

Initially, Kyiv rejected the US proposals, arguing that they lacked sufficient security guarantees and imposed an excessive $500 billion financial burden, which could leave future generations in unsustainable debt. A source indicated that Washington later removed this clause and other unfavourable terms for Ukraine.

Ukrainian officials say Kyiv is ready to sign a deal with the US for the joint development of its mineral resources, including oil and gas. This decision follows the US dropping its demand for a $500 billion claim on potential revenue from resource exploitation, as reported by the Financial Times.

Trump had initially framed the proposal as a way for Ukraine to repay the US for military and financial aid. However, according to the Financial Times, Ukrainian officials maintain that they successfully negotiated far better terms.

Rare earth elements are a group of 17 crucial metals used in diverse consumer technologies, such as cell phones, hard drives and electric or hybrid vehicles. However, it is unclear whether Trump focuses explicitly on these elements in Ukraine, which also holds significant reserves of other valuable minerals like lithium, titanium and uranium.

Trump sees China as his main geopolitical rival, the world's largest producer of rare earth elements. In response, the US and Europe have been working to reduce their dependence on Beijing for these critical resources.

This agreement could be crucial for Ukraine to ensure continued military assistance from its most powerful ally. Without that support, the country, engaged in a nearly three-year-long war since Russia's full-scale invasion in February 2022, would face severe challenges. The proposal also comes when access to critical minerals is becoming more limited globally.