Russian forces have taken control of a lithium-rich area near the village of Shevchenko in Ukraine’s Donetsk region, just three kilometers from the Dnipropetrovsk region border, according to a report by Le Figaro.

The captured zone spans approximately 40 hectares and is home to one of Europe’s most promising lithium deposits — a resource often referred to as “white gold” due to its growing importance in energy and defense sectors.

The village, seemingly unremarkable at first glance, lies roughly 10 kilometers from Velyka Novosilka, a town that fell to Russian troops in January.

The site’s value lies in its lithium deposits, which are used in battery manufacturing for electric vehicles, electronics, glass-ceramics, aerospace alloys, and energy storage systems. As demand for such components rises globally, lithium has become a highly sought-after strategic resource.

According to Le Figaro, this move allows Russia to tighten its grip on Ukraine’s mineral wealth at a time when global powers are racing to secure access to battery-grade lithium. In 2022, lithium prices peaked at over $80,000 per ton. As of June 27, 2025, the price in China stands at $8,500 per ton — a sharp decline, but still economically and strategically relevant.

By occupying this territory, Russian forces are not only expanding their military presence in eastern Ukraine but also gaining access to long-term economic and industrial assets. The Shevchenko deposit had previously drawn attention from foreign investors and Ukrainian state agencies as part of plans to reduce dependence on imported raw materials.

Analysts say the capture of lithium deposits may be part of a broader Russian strategy to control resource corridors and disrupt Ukraine’s ability to finance and rebuild its energy and industrial base. The seizure of such a site also raises concerns over future access to rare earths and critical minerals within the region.

Ukraine’s Ministry of Energy and Environment had previously identified the area as a priority for domestic exploration and foreign partnership. That potential now lies in contested territory under Russian occupation.

The seizure comes after Ukraine and the United States signed a major strategic agreement focused on resource security. On May 1, both governments finalized a joint framework to establish the Investment Fund for Reconstruction and Critical Mineral Partnership. The fund is a 50/50 initiative between Washington and Kyiv, intended to channel capital exclusively into Ukraine-based projects related to mining, oil, gas, infrastructure, and processing.

The newly formed fund underscores U.S. support for Ukraine’s sovereignty over its critical raw materials, particularly in sectors vulnerable to disruption from military occupation or foreign exploitation. The lithium-rich Shevchenko site had been among the locations considered for future development under this framework.

Occupying this territory, Russia not only expands its physical footprint in the Donbas but also potentially undermines Ukraine’s ability to leverage key assets in its postwar recovery and strategic industrial planning.