Ukraine: Titanium Cluster and U.S. Critical Minerals Pact

Ukrainian titanium producer Velta, owned by businessman Andriy Brodskyi, has announced plans to build a USD 250 million titanium cluster in the Dnipropetrovsk region. The initiative is positioned as the first flagship project under the U.S.–Ukraine critical raw materials agreement signed in 2025. The cluster would integrate ilmenite mining, titanium dioxide processing, and additive manufacturing applications, signaling a shift toward higher-value industrial chains.

In September, U.S. officials visited Ukraine to review potential mineral assets under the pact, including deposits of lithium, titanium, zirconium, and rare earths. Against this backdrop, Velta’s project is being framed as a strategic test case for whether U.S. partnership can anchor transparent development in Ukraine’s extractives sector.

Risks remain significant. Velta has a complex operational history, with previous attempts to scale production disrupted by war, logistics, and financing constraints. The USD 250 million investment target will require either foreign equity partners or substantial credit guarantees, both uncertain in the current environment. In addition, titanium remains a dual-use material closely monitored in global supply chains, raising regulatory and export-control considerations.

If successful, the cluster could reposition Ukraine as a strategic supplier of titanium products for Western industries, reducing dependence on Russian and Chinese sources. But if financing or governance falters, it risks becoming another stalled flagship project in Ukraine’s resource sector. For foreign investors, the case highlights both the opportunity of entering Ukraine’s mineral value chain and the structural risks of execution, transparency, and wartime disruption.