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Ukraine’s First Lithium Play Opens for Bids – A Primer for International Investors

by Roman Cheplyk
Thursday, June 19, 2025
3 MIN
Ukraine’s First Lithium Play Opens for Bids – A Primer for International Investors

Production-Sharing Agreement (PSA) pipeline, location highlights & why the “Dobra” block matters

1. Why this tender is different

  • First pilot under the new U.S.–Ukraine Critical Minerals Agreement – revenues will co-capitalise a joint Reconstruction Fund, giving investors both political cover and preferential offtake channels.

  • PSA framework – foreign operators receive a clear, 50/50 profit-sharing formula, international arbitration, a fixed tax package and the right to export finished product.

  • Fast-track timeline – the Inter-departmental PSA Commission confirmed it may launch an open competition for Dobra at its next sitting (Q3 2025) once due-diligence on the application packet is complete.


2. The Dobra lithium asset at a glance

Metric Detail
Region / logistics Novoukrainsky district, Kirovohrad Oblast – <250 km by rail to Black-Sea export hubs (Pivdennyi, Mykolaiv).
Resource base ~80–105 Mt lithium-bearing pegmatite ore @ 1.1–1.4 % Li₂O (JORC-compliant drilling recommended).
Estimated carbonate-equivalent ≈ 1 Mt LCE – enough for 20–25 GWh of battery output annually over a 20-year mine life.
Infrastructure Grid power, paved highway, skilled mining labour cluster; no active hostilities in the oblast.
Environmental & social Brown-field licence area (historic open-pit). GoU offers “green-mine” CAPEX subsidies for tailings re-processing & renewables integration.

3. Competitive edge versus other EU-proximate lithium plays

  • Scale & grade rival Portugal’s Barroso or Serbia’s Jadar but with lower land acquisition cost.

  • Geostrategic premium – EU & U.S. battery OEMs seek non-Chinese supply chains to secure IRA/CBAM compliance.

  • Export corridors – Romania’s port of Constanţa and Greece’s Alexandroupoli corridor (see recent SE Europe summit) provide diversified routes that bypass Black-Sea chokepoints.


4. How the tender will work

  1. Pre-qualification – technical/financial capacity, ESG plan, Ukraine-content targets.

  2. Bid components:

    • Signature bonus (one-off).

    • Annual work-programme & CAPEX schedule.

    • Percentage state take above baseline 50 % (tie-breaker).

  3. Award & PSA execution – ratified by Cabinet; stability clause for 20 yrs.

  4. Tax & royalty snapshot – 12 % minerals royalty deductible from profit share; 5 % withholding on dividends; VAT exemptions for exploration imports.


5. Wider lithium map & portfolio option

Province Asset Status Notes
Kirovohrad Polokhivska Reserved by state 760 Mt LCE – potential second PSA wave.
Zaporizhzhia Kruta Balka Temporarily occupied Long-term upside post-liberation.
Donetsk Shevchenko Combat zone Not tenderable until security restored.

6. Next steps for interested investors

  1. Monitor: Ministry of Economy & PSA Commission website for the official tender notice.

  2. Engage: Local geological service to access legacy core & permit data.

  3. Partner: Ukrainian EPC and drilling firms can fast-track compliance with local-content criteria.

  4. Finance: Blended packages via U.S. DFC, EBRD or EU Critical Raw Materials Fund are expressly eligible.


Bottom line: the Dobra PSA is set to become Ukraine’s showcase for lithium extraction under Western-backed security guarantees. Early movers secure both first-call on a sizeable European-grade resource and a seat at the table as Kyiv opens additional battery-metal blocks.

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