Bowels of Ukraine Contain 5% of the World Reserves of Lithium

by Olha Povaliaieva
Tuesday, October 26, 2021
Bowels of Ukraine Contain 5% of the World Reserves of Lithium

Lithium mining and production of electric cars in Ukraine

Lithium became the gold of this century. Its importance is provoked by the development of environmentally friendly means of transportation - electric vehicles. Lithium and cobalt are used to make electric car engines.

According to generally known data, the world's lithium reserves are approximately 53 million tons. Today, the largest players in the lithium mining market (about 70% of world production) are the so-called “lithium triangle”: Chile, Australia and Argentina.

  • Australia holds approximately 18.300 tonnes of precious metal;
  • Chile — 14.100;
  • Argentina — 5.500 tons.

Ukraine also has huge reserves of lithium, but since 2005 they have been classified as lithium is a strategic metal for Ukraine. According to insider information, there are 5 million tons of metal in the depths of our country, which is 5% of the world's total reserves. In monetary terms, this is about $80 billion.

There are 3 lithium deposits on the territory of Ukraine: in the Donetsk region (Shevchenko deposit), in the Kirovograd region (Polokhovskoe) and in the Zaporizhzhia region (Krutaya gully). However, there is no production in these fields.

In other countries, lithium can be easily extracted from salt lakes, while in Ukraine the metal is located at a depth of about 300 meters. Thus, mining lithium in Ukraine is not an easy task. Since the deposits are under the auspices of the state, to work with Ukrainian lithium, you need to obtain 2 licenses: for exploration and for production. The process is very expensive and time-consuming. Exploration of the field can cost from $30 million.

The opening in Ukraine of a plant for the processing of lithium into lithium concentrate will be promising, and then — the assembly of electric motors for electric cars. In Ukraine, it is easy to get the hang of conducting industrial activities, and the tax on the export of electric vehicles is ridiculously low — only €1 per kilowatt. That is, the export of even the most powerful electric car will cost €570.

Ukraine is very promising for participation in the lithium market and the production of electric cars. Investments in this sector of the Ukrainian industry will bring huge profits to the investor.

Call GT Invest and we will open the doors for you to this business in Ukraine.

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