Ukrainian titanium raw materials producer Velta plans to invest up to $30 million in building its own 25–30 MW power generation capacity to reduce reliance on grid electricity. The announcement was made by CEO Andriy Brodsky during the Business Breakfast program hosted by Volodymyr Fedorin for Forbes Ukraine.
According to Brodsky, electricity prices became a critical factor for the mining and processing business in 2024. The company experienced the most difficult year in its history, operating at a loss and nearing a production halt. While electricity previously accounted for approximately 15% of production costs, it now represents 60–70%. Velta pays $0.40–0.50 per kWh, whereas electricity prices in some U.S. states are reportedly ten times lower.
To address the issue, Velta plans to transition to in-house power generation. The company requires approximately 25–30 MW of capacity for full-scale operations. Investment in the project is estimated at $20–30 million. The final decision will depend on the company’s strategy following its transaction with Australian-listed European Lithium and on forecasts for electricity prices in Ukraine. Brodsky emphasized that the company will not build new production facilities as long as energy prices remain uncompetitive.
Velta is the only private company in Ukraine to have built a titanium mining and processing complex from scratch in the Kirovohrad region. Over more than 15 years of operation, it has captured approximately 2% of the global titanium raw materials market and cooperates with partners in Europe and the United States. The group includes Velta RD Titan (a research and development center) and Velta Medical (a producer of custom titanium implants).
LLC “Velta Holding” fully owns LLC “VKF Velta.” The ultimate beneficiaries are Andriy Brodsky (60%), Vadym Moskalenko (20%), and Vitalii Malakhov (20%). In 2024, Velta’s revenue declined by 25% to UAH 1.01 billion, while its net loss quadrupled to UAH 1.04 billion.
On January 27, European Lithium Limited signed an agreement to acquire 100% of Velta Titanium Holding. The Ukrainian company holds special permits for the development of the Byrzulivske and Likarivske ilmenite ore deposits in the Kirovohrad region.
Under the terms of the agreement, Velta shareholders will receive approximately 173 million shares in European Lithium, representing around 10% of the company’s capital following issuance. Velta Holding will join the group while retaining its management structure, team, and CEO Andriy Brodsky.
