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The Indicator from Planet Money

What to make of the Ukraine minerals deal

The Indicator from Planet Money

NPR

Business

4.79.2K Ratings

🗓️ 6 March 2025

⏱️ 11 minutes

🧾️ Download transcript

Summary

Even after Monday's pause on military aid to Ukraine following the Oval Office blow-up, it looks like a minerals deal between the U.S. and Ukraine is back on the table. We dive into what this potential deal would actually look like and whether Ukraine's minerals really live up to the hype.

Related episodes:
An end to China's rare earth monopoly? (Apple / Spotify)
The cost of a dollar in Ukraine (Apple / Spotify)

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Transcript

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0:00.0

NPR.

0:02.0

On Monday, Donald Trump announced a pause on military aid to Ukraine.

0:17.0

It's a huge deal.

0:19.0

The US is spending more on military assistance than the next nine other countries combined.

0:25.2

This freeze comes after the Oval Office blow up last Friday, just before what was supposed to be a signing ceremony on a minerals deal between the U.S. and Ukraine.

0:35.7

And to understand why Ukraine's minerals are so important to this very fraught negotiation,

0:41.7

you can look inside a Tomahawk cruise missile.

0:46.4

That is where you will find a very strong type of magnet,

0:51.1

a type so strong that it could crush your fingers off. These magnets are part of

0:57.2

small motors and electronics that the missile uses to help hit its target. And the magnet in

1:02.1

question is a neodymium magnet. Neodymium is what's called a rare earth element. It's one of

1:09.1

17 metals on the periodic table that help our modern

1:12.8

economy spin. Rare earth elements are also used in batteries, TV screens, and electric vehicles,

1:19.6

as well as throughout the military. Ultimately, there's almost no defense technology that I can

1:24.7

produce without rare earths. According to experts like Graceland

1:28.0

Baskerin, what makes the U.S. military nervous is that China produces 70% of the world's supply of

1:35.5

rare earths. This is the indicator from Planet Money. I'm Kenny Malone. And I'm Dariam Woods. Both the

1:43.0

U.S. and Ukraine say the door is still open to a minerals deal.

1:47.7

So today on the show, we decided to take a closer look.

1:50.9

What's in the draft deal?

1:52.4

Do Ukraine's minerals live up to the hype?

1:55.2

And who profits?

...

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