Russia Occupies One of Europe's Largest Lithium Deposits

Russian forces have taken control of the village of Shevchenko in Donetsk Oblast, a location that holds strategic economic value due to its proximity to one of Eastern Europe’s largest known lithium ore deposits. Situated just over 10 kilometers from Velyka Novosilka, the village itself may appear unremarkable, but the land beneath it is rich in valuable resources. According to Le Figaro, the occupation grants Russia access to a significant mineral asset—an estimated 1.2 million tonnes of lithium-rich ore with a concentration exceeding 1.5%.

Lithium has grown increasingly vital in recent years, primarily due to its central role in battery manufacturing for electric vehicles. Beyond this, the metal is also widely used in electronics, aerospace alloys, glass ceramics, and energy storage systems. The global demand for lithium has driven its market price to extreme highs. In 2022, it peaked at over $80,000 per tonne. However, as of June 27, 2025, lithium prices in China have dropped significantly, with a tonne selling for approximately $8,500.

This development comes against the backdrop of broader strategic initiatives involving Ukraine’s mineral wealth. Earlier this year, on May 1, Ukraine’s Minister of Economy Yuliia Svyrydenko and U.S. Treasury Secretary Janet Yellen signed an agreement focused on critical minerals. This deal laid the groundwork for establishing the U.S.-Ukraine Recovery Investment Fund. Aimed at supporting Ukraine's post-war economic reconstruction, the agreement underscores the importance of resource sovereignty and international partnerships in Ukraine’s recovery.

The official memorandum, published by Ukraine’s Ministry of Economy, details the creation of an economic partnership that includes mineral resource development as a key pillar. The agreement received overwhelming support in Ukraine’s parliament: on May 8, 338 MPs voted in favor of ratifying the accord. No lawmakers abstained or opposed the deal. Ukrainian President Volodymyr Zelensky finalized the process by signing the ratification on May 12.

The Russian military’s occupation of Shevchenko therefore represents more than a simple territorial gain. It could disrupt long-term plans by Ukraine and its Western partners to develop the country’s strategic mineral sector, particularly as these resources are essential to future technologies and energy systems. The seizure highlights how control over mineral deposits has become a component of geopolitical competition in the region.