The development of the lithium deposit “Dobra” in the Kirovohrad region has the potential to significantly impact Ukraine’s economy by creating new jobs and increasing budget revenues. However, the true economic effect, according to Vladimir Haustov, an expert from the Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine, can only be achieved if the processing of raw materials and the production of final products are organized within the country.
This is reported by Finway
The Importance of Localizing Lithium Product Production
According to the expert, exporting raw materials or concentrates will result in the main added value being generated outside of Ukraine. In contrast, the development of battery production and other lithium-based products will significantly enhance the project’s contribution to the development of the national economy.
“The production of batteries and other lithium-based products would significantly increase the project’s contribution to the economy’s development.”
Prospects and Challenges for the Lithium Project
At the same time, the expert warns that there are risks associated with changes in market conditions and technological shifts in the energy storage sector. Estimates suggest that it may take up to 15 years from the start of deposit development to the launch of finished product production, during which time alternative types of energy storage may emerge in the market.
It is worth noting that Dobra Lithium Holdings JV, with American shareholders Techmet and The Rock Holdings, won the competition for the development of the deposit under a production sharing agreement. The minimum investment in the project will be no less than 179 million dollars. In addition to lithium, the extraction of several associated metals is also planned.