Russia captures over 100-acre lithium reserve, one of Europe’s biggest ‘white gold’ sites

[noumoe]

Russia captures over 100-acre lithium reserve, one of Europe’s biggest ‘white gold’ sites

Though the village holds little tactical value, its subsurface resources are of growing strategic significance.

Updated: Jun 27, 2025

Russian forces have seized control of a key lithium-rich zone near the village of Shevchenko in Ukraine’s Donetsk region.

The site, located roughly 2 miles (3 km) from the border of Dnipropetrovsk oblast, spans approximately 100 acres (40 hectares) and contains one of the largest lithium reserves in Europe, according to a report by The New York Times.

One of Europe’s richest lithium sites
The Shevchenko deposit lies about 6 miles (10 km) from Velyka Novosilka, a town that fell to Russian forces in January.

Though the village holds little tactical value, its subsurface resources are of growing strategic significance.

Lithium, often called “white gold,” is a critical input for producing electric vehicle batteries, aerospace alloys, energy storage systems, and electronics.

With global demand for lithium rising parallel with decarbonization efforts and military modernization programs, control over such reserves offers more than a battlefield advantage.

It provides long-term leverage over industrial supply chains. In 2022, lithium prices peaked at over $80,000 per metric ton.

As of June 27, 2025, the price in China stands at approximately $8,500 per ton, down significantly, yet still commercially and strategically relevant, according to Defence Blog.

The Russian occupation of the Shevchenko site allows Moscow to further consolidate its hold over Ukraine’s natural resources.

The war shows a pattern of attacks on military targets and important resources like energy, minerals, and industry.

These attacks can hurt Ukraine’s recovery after the war and may impact future investments from the West.

Before the invasion, the Shevchenko area had attracted foreign interest and was under consideration for development by Ukrainian state agencies aiming to reduce dependence on imported raw materials.

Analysts suggest the seizure may form part of a larger Russian campaign to dominate resource corridors and inhibit Ukraine’s access to domestic revenue streams.

With critical mineral extraction sites under Russian control, Ukraine faces new obstacles in rebuilding its industrial base, even as reconstruction frameworks gain international support.

A challenge for the US?
In early May, the United States and Ukraine finalized a bilateral agreement to establish the Investment Fund for Reconstruction and Critical Mineral Partnership. This 50/50 joint initiative between Washington and Kyiv is designed to funnel capital into mining, oil, gas, infrastructure, and processing projects located on Ukrainian territory.

The Shevchenko lithium deposit has been listed among potential development sites under this framework.

Russia’s seizure of the area directly undermines those plans. It also doubts Kyiv’s capacity to secure foreign investment in contested zones, particularly as military operations continue across eastern Ukraine.

The occupation challenges US and European efforts to build resilient, non-Chinese supply chains for battery-grade lithium and other critical minerals.

The strategic importance of mineral security has become a priority for NATO and EU member states amid intensifying global competition.

Lithium, cobalt, and rare Earth elements are critical raw materials for energy transition, defense manufacturing, and economic stability.

By expanding its footprint in Donetsk and acquiring control of a key lithium site, Russia strengthens its ability to influence regional resource flows and broader geopolitical dynamics.

The move highlights the increasing role that mineral deposits play in global markets and modern hybrid warfare, where economic assets are as contested as territory.

https://interestingengineering.com/mili ... thium-site