In our previous publication, we talked about lithium as one of the important components of batteries, as well as the potential of its extraction in Ukraine.
And what is the potential of battery production in Ukraine?
A little bit of history
From the moment of gaining independence, the Ukrainian state understood the importance and necessity of building its own capacities for the development of the batteries industry.
In order to avoid dependence on the import of batteries and their shortage, the Government of Ukraine made a decision to build its own capacities for the production of these products. In 1992, the Cabinet of Ministers approved a decree according to which the Ministry of Economy was to allocate raw materials and equipment for the production of batteries to enterprises producing lead-acid batteries. Since in the early 1990s state support for the market was very important, an annual 100 per cent state order for the manufacture of batteries with the provision of its main types of raw materials was to be established in 1993.
In 1993-1995, manufacturers of lead-acid batteries received the right to independently sell up to 30% of batteries from the volume of state orders, including export.
In 1996, the Government reduced import duty rates on technological equipment, spare parts and materials supplied to the closed-type joint-stock company “Ista-center” for the implementation and development of the technology for the production of closed-cycle lead-acid batteries.
At the end of the 1990s, other factories began to appear in Ukraine that produced batteries, using modern equipment at that time and were able to compete with inexpensive imported analogues. Accordingly, with the development of a full-fledged battery market, there was a need to introduce state support tools.
Ukraine’s battery production today
Today, Ukrainian enterprises produce a wide range of batteries for cars, agricultural and special equipment. They largely satisfy the domestic demand for car batteries. In addition, Ukrainian batteries are exported to a number of countries, in particular to the EU.
The technology used to produce lead-acid batteries in Ukraine is actually outdated. But thanks to the efforts of research institutions and separate divisions of manufacturing enterprises, this technology is being improved, which allows Ukrainian products to remain competitive on world markets.
Ukraine has six main battery-producing enterprises in different parts of our country. In addition, there are a number of scientific institutes and state-owned enterprises conducting research in the field of batteries.
The ecosystem of startups in this area is also developing. Nevertheless, for the further development of both scientific research in the field of batteries and startups, foreign investments are critically needed in Ukraine.
Strategic partnership
Considering that the EU imports 90% of critical raw materials from non-European countries, it is strategically important to develop its own battery production capacities, as well as to provide this production with a raw material base. And Ukraine has something to offer for fruitful cooperation with the EU in this area.
Experts of the EU Project “New Code of Ukraine on the Subsoil” are preparing an analytical review of advanced battery technologies in Ukraine, which will also explore the connections and potential value chains between the needs of battery manufacturers in the EU and the corresponding raw materials in Ukraine. To ensure you don’t miss a research publication to find out which companies and startups are working on the development of battery production in Ukraine, follow the information resources of the BRDO or subscribe to the monthly digest.
The project is financed by the European Union and implemented by the Consortium consisting of experts from Projekt-Consult (Germany), MinPol (Austria) and the Better Regulation Delivery Office (Ukraine). This publication reflects the position of the Project and does not necessarily coincide with the position of the European Commission.