Graphite Production in Ukraine Could Not Withstand New Tariffs.

The only graphite enterprise in Ukraine, 'Zavalivsky Graphite', which had been extracting natural graphite since 1934, has suspended its operations.

The National Association of Mining Industry of Ukraine stated that this will be a serious blow to the country’s industry, considering the important role of graphite in many sectors, such as electrode production, the automotive industry, and advanced technologies, as well as the defense industry.

According to the Association, the reasons for the suspension of the enterprise were the increase in electricity tariffs by the NERC and logistical issues from 'Ukrzaliznytsia'. Furthermore, the enterprise required significant modernization.

'The situation has worsened in international markets. The price of commodity products has dropped to levels where support was not possible for us. One of the reasons for this is the dumping policy of the People's Republic of China aimed at overcoming competition in the markets of important raw materials. The suspension of the enterprise's operations will significantly impact the sectors that relied on local graphite extraction. Ukraine will be forced to find alternative sources of graphite supply, which may further impact the availability and cost of products in key sectors of the economy,' the Association noted.

According to the Association, these events serve as a signal for the need to revise the state tariff policy and implement more effective strategies to support strategic enterprises and international investment partnerships.