Ukraine can become the leading supplier of direct reduction iron to the EU and help Europe decarbonize its metallurgy.

Ukraine has five billion tons of magnetite ore, the primary raw material for direct reduction iron (DRI) production, the demand for which is growing strongly in Europe. Potential commercial supplies of Ukrainian DRI raw materials in the medium term are 20-25 million tons. At the same time, the potential growth in demand for DRI raw materials globally in 2030 will be 180 million tons.

“Supply of iron ore raw materials for DRI production and substitution of pig iron supplies to the EU for green hot briquetted iron (HBI) will allow Ukraine to integrate into European green value chains. For this, Ukrainian enterprises such as Ferrexpo, Metinvest, ArcelorMittal Kryvyi Rih will need access to European funds,” experts emphasize.

It is noted that Ukrainian magnetite ores are suitable for enrichment sufficient to provide an iron content of 68-70%. Given the existing plans to build DRI plants in the EU, these raw materials will be in high demand. Thus, Ukraine can help European metallurgy decarbonize.