Ukrainian company Velta, a leading producer of titanium raw materials, has announced plans to invest up to $30 million in the creation of its own electricity generation capacities. This move is aimed at reducing electricity costs, which became a critical factor for the company’s mining and processing business last year.
This is reported by Finway
Cost Issues and Investment Prospects
Velta’s CEO Andriy Brodskyi reported that the company is considering building generation capacity of 25-30 MW. According to him, in 2025, electricity costs rose to 60-70% of the cost structure, whereas previously this figure was only 15%. Currently, Velta pays $0.4-0.5 per kWh of electricity, which significantly exceeds prices in the US market, where in some states electricity can be ten times cheaper.
“For Velta, this year has been the toughest in the company’s history. We were on the brink of stopping. We operated at a loss,” Brodskyi noted.
The estimated investment in its own generation will amount to $20-30 million. The final decision on the project’s implementation will depend on the further development strategy after signing an agreement with the Australian company European Lithium, as well as on forecasts regarding electricity price dynamics in Ukraine. The company’s leader emphasized that Velta will not consider building new production capacities in Ukraine as long as energy carriers remain uncompetitive in price.
Velta: Leader in Ukraine’s Titanium Industry
Velta is the only private company in Ukraine that has created a titanium mining complex from scratch in the Kirovohrad region. Over more than fifteen years of operation, Velta has secured a share of about 2% in the global titanium raw materials market and successfully collaborates with partners in Europe and the USA. The group of companies also includes the Velta RD Titan research center and the manufacturer of custom titanium implants, Velta Medical.