Ukraine’s critical materials sector was the focus of the “Strategic Resources of Ukraine” Conference, held within the framework of the Economic Growth Strategy until 2040. The event, developed by Boston Consulting Group in partnership with the We Build Ukraine think tank, assessed investment prospects and key challenges in the industry.
The metals and mining industry remains a cornerstone of Ukraine’s economy, contributing 6.1% to GDP and 30% of total exports (as of 2021). Despite the country’s vast reserves and historically low-cost structure, the industry faces asset losses, infrastructure damage, and labor shortages due to the ongoing war. Ferrous metals mining, concentrated in the Kryvyi Rih basin, remains largely under Ukrainian control, while non-ferrous materials, including precious metals and rare earth elements, are crucial for sectoral growth. However, the war has shifted export dynamics, increasing dependence on raw ore exports and leading to profitability declines and logistical challenges.
Globally, the demand for critical raw materials is intensifying, driven by their essential role in industrial production, technological development, and renewable energy. However, supply chains face high geographic concentration, long project development timelines, declining resource quality, environmental concerns, and climate risks.
Investment in Ukraine’s mining sector is hindered by multiple barriers:
- State policy gaps, including the lack of an updated critical materials strategy and an outdated mineral classification system.
- Institutional shortcomings, such as fragmented geological data, secrecy in resource information, and complex land acquisition procedures.
- Limited state support, with no fiscal incentives, war risk insurance, or export assistance for mineral companies.
Despite these obstacles, Ukraine has significant potential to attract international investment in critical raw materials extraction, processing, and exports. The country must develop a long-term strategy to leverage its mineral wealth, strengthen economic independence, and accelerate green energy transition.
