Putin Proposes Rare Earth and Aluminium Trade Deal with US
Russian President Vladimir Putin has extended an offer to the United States for joint exploration of Russia’s rare earth metal deposits and the supply of aluminium to the US market. The proposal outlines a potential economic partnership between the two countries.
The announcement follows US President Donald Trump’s statement that “major economic development transactions with Russia” were forthcoming. Within hours of Trump’s comments, Putin convened a meeting with ministers and economic advisers to discuss Russia’s rare earth sector.
“We are ready to offer our American partners—both government and private companies—joint work in this area if they show interest,” Putin said on state television. He highlighted Russia’s significant reserves, stating, “We undoubtedly have significantly more resources of this kind than Ukraine.”
Russia possesses the world’s fifth-largest reserves of rare earth metals, estimated at 3.8 million metric tons, behind China, Brazil, India, and Australia. These metals are critical for producing magnets used in electric vehicles, cell phones, missile systems, and other technologies. Despite its large reserves, Russia mines only 2,500 tons of concentrate per year and lacks sufficient processing capacity.
Putin suggested that potential deals could also extend to deposits in eastern Ukraine, which Russia controls. Additionally, he proposed supplying up to two million tonnes of aluminium to the US market annually if trade restrictions were lifted. Before the imposition of tariffs in 2023, Russia accounted for around 15% of US aluminium imports.
“This will not significantly affect price formation, but it could still have a restraining influence on prices,” Putin stated.
He also proposed potential collaboration on hydropower and aluminium production in Russia’s Krasnoyarsk region, home to Rusal, the country’s largest aluminium producer. Putin estimated that investments in such projects could reach $15 billion.
Furthermore, Putin indicated that Russia and the US could cooperate in the broader energy sector, mentioning that some Russian and US companies were already in discussions, though he did not provide specifics.
In a transcript published by the Kremlin, Putin emphasized rare earth metals as a strategic sector for Russia’s economic development. The government aims to boost domestic production from extraction to high-tech manufacturing, with plans to significantly increase output under a national development initiative.
