Russian forces have taken control of a village in Ukraine’s Donetsk Oblast that is also the site of Europe’s largest known lithium ore deposits that will gut the recent minerals deal signed on April 30 with the Trump administration.

The village of Shevchenko, located just over ten kilometres from Velyka Novosilka, was captured by Russian troops at the weekend, Le Figaro reported. The area is home to an estimated 1.2mn tonnes of lithium ore, with a rich lithium content of over 1.5%, according to geological data cited by the publication.

“Having captured this seemingly unremarkable village, located a little more than 10 kilometres from Velyka Novosilka, Russian troops gained access to one of the most promising lithium deposits in Ukraine,” Le Figaro reported.

As bne IntelliNews reported, Ukraine doesn’t have any rare earth metals (REM) at all, but it is home to significant deposits of some 20 out of 30 critical minerals named by the EU as essential to business. However, most of the biggest deposits lie in the east of the country either close to, or behind, the frontline in the war with Russia.

The loss of Shevchenko will be a major blow to both Kyiv and the US plans to exploit Ukraine’s mineral wealth as this lithium deposits was one of the most bankable of all Ukraine’s metallurgical deposits.

Shevchenko’s deposit is one of the largest in Eastern Europe and accounts for about a third of all known lithium deposits in Europe. Lithium has become a critical material in the global race for energy transition and EV battery manufacture.

Prices for lithium surged in recent years, reaching a record high of $80,000 per tonne in 2022, driven by demand for electric vehicle batteries. As of June 27, 2025, the price has retreated to $8,500 per tonne in China, but global interest in securing supply remains high.

Lithium is also widely used in electronics, glass ceramics, aviation alloys, and energy storage technologies, making it a central resource in decarbonisation strategies and future industrial policy.

In early May, Ukrainian Economy Minister Yuliia Svyrydenko and US Treasury Secretary Janet Yellen signed an agreement establishing the US–Ukraine Recovery Investment Fund, focused in part on critical minerals.

The Ukrainian parliament ratified the minerals agreement on May 8 with unanimous support, and President Volodymyr Zelenskiy signed the ratification into law on May 12. The initiative includes provisions for joint exploration and investment in Ukraine’s subsoil resources, including lithium, as part of a broader strategy to align with Western economic and security interests.