Ukraine is set to become the largest supplier of direct reduced iron (DRI) raw materials to the European Union, driven by its vast reserves of magnetite ore and rising demand for low-carbon steelmaking, according to a report by Ukraine’s GMK Center.

Ukraine boasts 5 billion tons of magnetite reserves, the primary raw material for DRI production. With the EU accelerating the electrification of its steel industry, the demand for DRI is projected to grow rapidly. Ukraine’s potential commercial DRI supply is estimated to reach 20–25 million tons annually in the medium term.

Globally, DRI demand is expected to rise by 180 million tons by 2030, fueled by decarbonization efforts in the steel sector. Several European metallurgical companies, including H2 Green Steel, GravitHy, and BlastrGreenSteel, have announced plans to produce DRI and hot briquetted iron (HBI) to meet internal and commercial market demands.

Meanwhile, Ukrainian steel producer Metinvest, in partnership with Italian engineering firm Danieli, plans to construct DRI facilities to support future electric arc furnace (EAF) operations. This project, with an estimated investment of €2.5 billion, will rely on Ukraine’s DRI supply, further strengthening the country’s role in the EU’s green steel transition. Ukraine’s strategic resources and infrastructure developments position it as a critical player in supporting Europe’s shift toward sustainable steelmaking.