Ukraine plans to introduce preferential conditions for manufacturers of electric vehicles and use domestic lithium to manufacture batteries.

“We plan to establish the production of electric cars for domestic needs and export. Our domestic needs are so high that, in the next 5-10 years, we can work to saturate the national market,” said Prime Minister Denys Shmyhal.

According to the prime minister, the government is determined to develop and use local sources of lithium to produce electric car batteries. Currently, the government is developing a mechanism to invite producers of electric vehicles to a preferential taxation regime.

From 2019 to 2022, lithium production in Ukraine increased from 68,000 tons to 737,000 tons. This year, production volume is expected to cross the 1-million-ton mark for the first time.

Four Ukrainian lithium deposits are known: the Dobra site and the Polokhivske deposit in the Kirovohradskyi region, Kruta Balka in Zaporizhia, and Shevchenkivske in Donetsk.