The global lithium iron phosphate (LiFePO₄ or LFP) battery industry is experiencing significant growth, driven by increasing demand for electric vehicles (EVs), renewable energy integration, and energy storage solutions. As of 2024, the global LFP battery market was valued at approximately $18.7 billion and is projected to reach around $90.3 billion by 2034, growing at a compound annual growth rate (CAGR) of 16.9%.

In Uzbekistan, the Almalyk Mining and Metallurgical Complex (AMMC) is initiating a project for the joint production of lithium iron phosphate (LFP) batteries and is actively seeking investors to implement it. As part of its broader $15 billion expansion program, AMMC plans to increase copper cathode output from 148,000 to 400,000 metric tons per year by 2030. This expansion includes the construction of new smelting facilities and the production of copper foil, a critical component for lithium-ion batteries.

Uzbekistan offers competitive infrastructure costs, making it an attractive location for manufacturing investments. Key costs include:

- Gas: 12 cents per m³

- Electricity: 7 cents per kWh

- Water: 20 cents per m³

Uzbekistan offers a skilled and cost-effective labor force, ideal for the manufacturing sector. In this field the country has:

- 4 higher education institutions

- 8 faculties

- 1,300 graduates annually

GSP+ agreement allows to export to EU at reduced or zero tariff for 6 200 products. CIS Free Trade Agreement creates more integrated and open market with CIS countries.

Investors in Free Economic Zones (FEZs) can benefit from tax exemptions on land, property, water, and corporate income tax (CIT).

3 years: for investments between 0.3 - 3 million USD

5 years: for investments between 3 - 5 million USD

7 years: for investments between 5 - 10 million USD

10 years: for investments over 10 million USD