U.S. President Donald Trump announced on Monday a proposal for Ukraine to supply the United States with rare earth minerals as compensation for the nearly $300 billion in financial support provided to assist Ukraine’s war efforts against Russia.

During a press conference at the White House, Trump indicated that Ukraine is open to this arrangement, referring to it as a form of 'equalization.'

The specifics of the proposal were not entirely clear, as it was uncertain whether Trump was exclusively discussing rare earth elements or encompassing all critical minerals.

However, he underscored the significance of Ukraine's mineral resources outlining their strategic importance.

Rare earth minerals are essential in the production of various technologies, including electric vehicle motors, smartphones, and a wide array of electronic devices, due to their unique properties and the lack of known substitutes.

According to the U.S. Geological Survey, there are 50 critical minerals vital to the U.S. economy and national defense, which include rare earth elements, lithium, and nickel.

Although Ukraine is known to have substantial deposits of uranium, lithium, and titanium, these resources are not ranked among the world's largest reserves.

Currently, the United States has limited domestic capabilities for mining rare earth metals but is actively pursuing initiatives to enhance its production capacity.

In contrast, China remains the predominant player in the global rare earth market, controlling a significant portion of the supply chain for these vital minerals.