Kazakh Minerals Poised to Shape Green Transition

Kazakhstan, which was long known for its oil and uranium exports, has now started positioning itself as a central player in the global race for critical raw materials (CRMs). With the European Union expanding its green and digital transformation, Kazakhstan’s vast reserves of rare earths, lithium, and other strategic minerals are now becoming a cornerstone of new partnerships that extend far beyond traditional energy diplomacy. This has a promise of becoming a new era of energy diplomacy between the European Union and Central Asia, with Kazakhstan playing a pioneering role in its region.

Demand for rare earth elements (REEs) and other CRMs is increasing, as more countries are pursuing zero-carbon targets. Kazakhstan’s announcement in 2025 of substantial deposits was deliberately timed to coincide with the EU–Central Asia summit in Samarkand, Uzbekistan. These minerals are indispensable for smartphones, semiconductors, fibre-optic networks, and renewable energy technologies. In effect, Kazakhstan is signaling its readiness to move from being a fossil-fuel supplier to a critical enabler of the development of global technological industry, heavily reliant on REEs and CRMs for production.

The European Union was quick in seizing this opportunity by launching a strategic roadmap for 2025–2026 under the Global Gateway Strategy and REPowerEU plan. In 2023 already, a Memorandum of Understanding was signed between Brussels and Astana. It outlines four pillars of cooperation; integration of raw materials and battery value chains, development of renewable hydrogen, resilience of supply chains, and research, innovation, and skills building.

This partnership’s long-term objective is not just about securing resources. It is about embedding Kazakhstan into Europe’s sustainable value chains, reducing dependency on China, which currently processes 85% of global rare earths, and diversifying Europe’s supply base.

Kazakhstan offers to Europe more than resources. It offers resilience. CRMs such as gallium, germanium, and REEs are vital for semiconductors, data centers, and renewable energy infrastructure. By deepening cooperation, the EU can strengthen its digital sovereignty and green transition, while supporting modernization in Central Asia. For Kazakhstan, the partnership is a pathway to diversify its economy, attract investment, and assert itself as a global supplier in the post-fossil fuel era.

Kazakhstan’s CRM strategy is not limited to mining. By partnering with the EU, the UK, South Korea, Japan, and China, it seeks to build integrated value chains in batteries, renewable hydrogen, and advanced materials. German firm HMS Bergbau AG’s investment in lithium exploration exemplifies this trend. If successful, Kazakhstan could become a permanent link in global supply chains, not just as a raw exporter, but as a processor and innovator.

Kazakhstan’s ambitions are significant, but not without hurdles. Infrastructure bottlenecks create problems in increased supply demand. Caspian ports at Aktau and Kuryk already operate at peak capacity, and the Trans-Caspian International Transport Route requires major upgrades to handle increased mineral shipments. Processing capacity is another gap. Most CRMs still need refining abroad, often in China. To address this, Kazakhstan plans new facilities, including an internationally accredited rare earth laboratory under the National Geological Service by 2026. Yet, unlocking the full potential of more than thirty promising sites will require massive financial investment, far beyond what the state is currently able to provide.

Kazakhstan’s critical raw materials strategy is reshaping its role in global geopolitics. By aligning with the EU and other partners, it is moving from the margins of resource diplomacy to the center of the green and digital transformation. The success of this pivot will depend on infrastructure, investment, and the ability to build processing capacity. However, the trajectory is clear: Kazakhstan is emerging as a strategic hub for the minerals that will define the 21st century.