As the race for critical raw materials intensifies, Kazakhstan is cementing its position as one of the most ambitious actors in Central Asia – a region increasingly courted by global powers seeking to stabilise mineral supply chains.
This year’s EU Raw Materials Week reflected that shift. For the first time, Brussels dedicated an entire session to cooperation with Central Asia, signalling that Europe is reassessing its dependencies and preparing to engage resource-rich partners more seriously.
Kazakhstan used the platform to showcase the development potential of its critical and rare-earth minerals sector. Meetings on the sidelines with European companies highlighted the EU’s view of Kazakhstan as one of its most dependable suppliers.
Accelerating capabilities
The timing aligns with Kazakhstan’s own industrial drive. The government has identified four priority areas for new processing ventures: battery materials, semiconductor inputs, heat-resistant alloys for jet engines, and permanent magnet recycling.
At least three high-tech processing facilities are expected to launch within the next three years under President Kassym-Jomart Tokayev’s directive to move the country further up the value chain.
Several projects are already underway. Plans include annual production of 15 tonnes of gallium, expansion of high-purity manganese sulphate, and increased graphite output for battery components. Facilities in Zhezkazgan and at the Ulba Metallurgical Plant will soon begin producing heat-resistant nickel alloys and recycling permanent magnets in cooperation with EU partners.
If realised, these projects could position Kazakhstan as a midstream processing hub – a capacity Europe needs to meet its Critical Raw Materials Act (CRMA) targets.
Kazakh ambitions attract the US
Kazakhstan’s ambitions stretch beyond its borders. National mining company Tau-Ken Samruk has launched geological exploration for rare and rare-earth metals in Rwanda and Afghanistan, moving the country into global upstream competition.
This outward push intersects with renewed US interest in the region. Analysts argue that “Trump 2.0” has brought Central Asia back into Washington’s strategic view, largely because of critical minerals. The US Geological Survey lists 54 minerals essential for national security, including rare earths where China still dominates global processing.
Kazakhstan’s role in this equation is significant. It has reserves or production capacity for roughly half the minerals on the US list, is the world’s second-largest chromium producer, ranks 11th in copper and supplies around 40 per cent of global uranium exports.
Recent developments, including the opening of a tungsten processing facility in the Almaty region and US-supported bids for Kazakh tungsten deposits, underscore Washington’s efforts to reduce reliance on China by turning to Central Asian suppliers.
Europe’s challenge
For Europe, this intensifying competition is both an opportunity and a warning. The EU has strengthened its toolbox through the Global Gateway and the CRMA, but experts note that Brussels still moves more slowly than competitors.
A €12-billion funding package announced earlier this year remains largely unallocated, raising questions about whether political intent can be translated into industrial momentum.
Regional analysts argue that ESG is the EU’s only durable competitive advantage in Central Asia. Chinese firms already manage dozens of CRM projects in the region and import around 70 per cent of its mined output.
Yet European investors enjoy a reputational premium because they bring enforceable environmental, social and governance standards that other firms often treat as optional.
That premium, analysts warn, will only persist if ESG becomes the backbone of the EU’s engagement. This means embedding audited remediation plans, transparent royalties, community consultations and modern processing technologies – water-efficient plants, closed-loop waste systems and renewable-powered smelters – into every euro of funding.
Gaining edge
The same analysis identifies three steps Europe must take to remain competitive. First, match capital with strict ESG conditionality so that investment drives higher environmental and governance standards rather than simply expanding extraction.
Second, prioritise co-investment in midstream processing and recycling, which create jobs, transfer technology and keep more value within the region.
Third, remove talent barriers by easing visa rules so that Kazakh engineers and metallurgists can participate in European research networks.
These steps would turn Europe’s sustainability credentials, industrial expertise and human-capital partnerships into a competitive advantage.
Central Asian states are increasingly acting as regional powers capable of balancing competing offers from global players. If Europe wants to secure stable, rules-based supply chains with partners that value transparency and domestic capacity building, it must act quickly – and on the terms that give it a genuine edge.
(BM)
