The development of the lithium deposit “Dobra” in the Kirovohrad region has the potential to provide a significant boost to Ukraine’s economy, provided that processing and production of final products are localized within the country. Scientist Volodymyr Haustov from the Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine emphasized that only the establishment of a complete production chain will allow for the maximum utilization of the project’s potential for the development of the national economy.
This is reported by Business • Media
Localization of Production: The Path to Added Value
The expert highlighted that exporting raw materials or concentrates will lead to the formation of the main added value outside Ukraine. In contrast, organizing the production of batteries and other lithium-based products in Ukraine can significantly increase budget revenues and create new jobs.
He added that when exporting raw materials or concentrates, the main added value will be formed outside Ukraine, whereas the production of batteries and other lithium-based products would significantly enhance the project’s contribution to economic development.
Investments and Project Prospects
At the same time, the expert pointed out the risks associated with changes in market conditions and the potential shift of the industry to alternative energy storage technologies. It is estimated that it may take about 15 years from the start of development to the production of finished products, during which new types of energy storage systems may emerge in the market.
Currently, the winner of the competition for the development of the “Dobra” deposit is Dobra Lithium Holdings JV, whose shareholders include American companies Techmet and The Rock Holdings. The project involves attracting at least $179 million in investments and, in addition to lithium, includes the extraction of several accompanying metals.