Ukraine’s new industrialization is the foundation of the country’s rapid economic growth, and critical-mineral extraction plays a key role, BGV Group Management board member Sergii Voitsekhovskyi emphasized in a speech at the Kyiv International Economic Forum.

He said there are several common myths about the critical raw materials (CRM) sector that BGV consistently debunks.

The most widespread myth is that critical materials extraction is just a raw‑commodity business; in fact, it’s a high‑tech industry with numerous value‑adding stages. Today, projects already underway in Ukraine demonstrate a fundamentally different approach: building full-cycle industrial chains, focusing on high-value-added products, and developing technology domestically. One example is BGV Group Management’s graphite project, which includes a mine and processing plant at the Balakhiv graphite deposit and a spherical graphite (SPG) plant for lithium‑ion batteries. From the outset, the project has aimed to move beyond extraction to produce finished anode material — a key component of the global energy transition. When the depth of processing — from ore to finished anode material — is assessed, preliminary estimates show that the value increases by 50 to 70 times, depending on the quality of the final product. Most of this added value will have a multiplier effect on Ukraine’s economy through spending on materials and components, additional services, labor costs, utilities, and taxes, thereby stimulating related industries. Such a long and high-tech processing chain lays the foundation for Ukraine to become not only a supplier of raw materials but also a manufacturer of finished products — lithium-ion batteries.

At the same time, Sergii Voitsekhovskyi drew attention to the fact that BGV’s projects are not solely mining but ecosystem-based, laying the groundwork for rapid, high-quality regional development.

In particular, the Balakhiv graphite project is expected to deliver 300 hectares of advanced industrial infrastructure and create 750 new jobs within five years. According to BGV, once both phases are completed, annual payroll will total roughly UAH 230 million, with over 60% flowing to the community budget. The project’s scale and complexity are also expected to spur regional infrastructure upgrades, including transport, social services, and utilities.

Preliminary estimates suggest the BGV Graphite project could position the company – and, by extension, Ukraine – as Europe’s leading graphite supplier within the next four years.

“The EU has recognized our project as critical, and European partners are now very open to cooperation. It’s inspiring. The European Commission is setting up a system to facilitate contracts for purchasing products for strategic projects, support financial structuring, and attract additional investment. This approach streamlines our entry into the European market. We believe the mining sector will drive a new industrialization for our country,” said Sergii Voitsekhovskyi.