Following Donald Trump's victory in the US presidential election, Ukrainian authorities have been actively discussing the possibility of attracting American investment in lithium deposits. However, experts are skeptical of this idea, pointing to a number of significant problems.
Yegor Perelygin, CEO of Ukrainian mining company UMCC Titanium , notes that Ukrainian lithium deposits are not yet ready for development. The main problems include the high cost of extraction due to the mine method of development, as well as the uncompetitive price of electricity.
“The cost of production in Ukraine significantly exceeds similar indicators in Australia, Argentina, Chile or China,” Perelygin explains. In addition, the construction of mines and mining and processing plants requires hundreds of millions of dollars in investment, and the construction of an electrochemical plant requires about a billion dollars.
One of the most promising Ukrainian lithium deposits was considered the Shevchenkovske deposit in the Donetsk region. However, due to the war, its development became impossible: the front line came close, and Russian troops continue to advance. Even under favorable conditions, the cost of production would remain extremely high.
Even if domestic problems are resolved, Ukraine faces tough competition on the global market. According to Perelygin, there is currently a lithium surplus caused by overproduction and China's technological dominance.
“Chinese companies are ready to operate at a loss to crowd out competitors. Lithium prices will remain low for the next 2-3 years,” the expert predicts.
The Ukrainian thesis “come to us, we have lithium” looks incorrect, says Perelygin. The deposits are not prepared, and economic indicators do not allow to compete with other countries.
The problem also lies in the lack of a clear strategy for the development of the lithium industry. Without significant investments, technological solutions, and competitive infrastructure, Ukraine risks being left out of the global “lithium boom.”.
