Ukraine to receive up to 22% of lithium production in Kirovohrad region: government sets conditions for US investors

The Ukrainian government is beginning the practical phase of implementing one of the country's key mining projects - the development of a lithium deposit at the Dobra site in Kirovohrad region. Under the terms of the agreement, the state will receive up to 22% of the total volume of lithium produced.

This was announced by Deputy Minister of Economy, Environment and Agriculture of Ukraine Yegor Perelygin, emphasizing the importance of attracting experienced and financially capable investors. "The project requires qualified partners capable of making significant investments and applying modern technologies. Therefore, the Cabinet of Ministers decided to implement it under the terms of a production sharing agreement (PSA), which provides the state with effective control over the activities of investors," he emphasized.

Terms and investment volumes

The competition provides for a minimum guaranteed investment of 179 million US dollars. The investor is obliged to conduct a detailed geological exploration of the deposit within 2.5 years. The next stage, within 4–5 years, is the construction of a mine for the extraction of lithium minerals and facilities for their processing into concentrates.

According to the terms of the agreement, after the launch of production, the investor will return the invested funds for at least 3–4 years at the expense of compensatory products received from the state. At the same time, the maximum share of products that can be used to repay investments does not exceed 70%.

Financial benefits for the state

In addition to its share of profitable products (not less than 4%), Ukraine will also receive rental payments in the amount of 5% of the product price, investor profit tax (18%), as well as personal income tax, social security tax and military levy. The Deputy Minister emphasized that "even with the minimum share of the state in profitable products, the total financial effect for the state is expected to be 22% of the total volume of lithium products produced."

Strategic significance of the project

The project at the Dobra site opens up unique opportunities for Ukraine to integrate into global supply chains of critical minerals. The involvement of American and European investors guarantees not only financial revenues, but also modern technologies for lithium extraction and processing, as well as additional security guarantees due to the presence of strategic partners.

Prospects for the industry

The implementation of this project may become an impetus for attracting additional global capital to Ukraine's high-tech mining industry. According to Perelygin, the successful implementation of the production sharing agreement will create a model for future projects for the extraction of critical resources, ensuring the economic effect and strategic independence of the country.