Kazakhstan: A Strategic Partner for Europe in the Race for Critical Minerals

As the global energy transition accelerates, the European Union is stepping up efforts to secure supplies of critical minerals essential for green technologies. At the heart of this strategy lies Kazakhstan, a resource-rich Central Asian country increasingly sought after by Western powers.

The EU has included recently the Sarytogan graphite deposit, located in the Karaganda region of Kazakhstan, in the list of strategic initiatives, according to the Ministry of Industry and Construction of the country.

During a series of meetings held in Brussels this December, representatives from the EU and the Kazakh government emphasized the growing importance of their cooperation in the field of strategic raw materials. Roman Vakulchuk, Head of the Climate and Energy Research Group at the Norwegian Institute of International Affairs (NUPI), stated:
“Kazakhstan has a wide variety of mineral reserves. What makes the country truly unique is the proximity of different minerals within its territory.”

Rare minerals play an important role in low-carbon energy production. Therefore, the EU is turning to the use of these minerals and, consequently, to importing them from producing countries. On the other hand, it is observed that the EU is seeking new rare mineral-producing partners, among which Kazakhstan is included. Indeed, at the end of 2024, numerous scientific events such as roundtable meetings and discussions were held in Brussels between the EU and Kazakhstan to foster cooperation on rare minerals. On December 12, 2024, Euractiv brought together officials from the Kazakh government and experts from the European Commission to collaborate on rare minerals.

Kazakhstan’s economy is showing significant growth dynamics and is focused on the mining industry. In this context, the EU and Kazakhstan should be considered indispensable partners in terms of mining. Since Kazakhstan’s independence, the EU has been one of its main political and economic partners through trade and investments. The EU accounts for half of Kazakhstan’s foreign trade volume and attracts foreign capital into the country’s economy.

Kazakhstan has long been recognized as a major fossil energy exporter to the EU. In December 2015, they signed the Enhanced Partnership and Cooperation Agreement (EPCA), strengthening their mutual ties. This agreement was the first of its kind signed by the EU with a partner in Central Asia/Turkestan. Before the war in Ukraine, Kazakhstan was the EU’s third-largest oil supplier—after Russia and Norway—meeting 6% of its demand. Europe is by far Kazakhstan’s largest market, consuming 70% of its oil exports. Kazakhstan is also the EU’s largest nuclear energy supplier, meeting more than 21% of its uranium demand.

Moreover, European multinational companies are very active in Kazakhstan’s hydrocarbon production. French oil and gas giant Total, British-Dutch Shell, and Italian Eni collectively hold over 50% of the Kashagan field, with each owning a 16.81% share. Eni also holds a 29.25% share in the Karachaganak field and a 50% share in the Shell Arman field, among others.

Kazakhstan’s Energy Transition

Despite having a high-carbon-intensive economy driven by natural resource extraction, Kazakhstan has committed to achieving climate targets to combat climate change. Experts emphasize that Kazakhstan could achieve significant carbon reductions by transitioning from its current hydrocarbon-based economy to a new hydrogen-based economy. At this point, interest in rare minerals—especially hydrogen—becomes crucial for both Kazakhstan and the European Union.

Cooperation Between the EU and Kazakhstan on Rare Minerals

Since the week of December 12, 2024, when a series of events on rare mineral cooperation between the EU and Kazakhstan were held in Brussels, the capital of the European Union, a mutual interest in enhancing Europe-Kazakhstan collaboration on rare minerals has been emphasized. Before delving deeper into this interest, it is appropriate to clarify the term.

On November 7, during COP-27 in Egypt, the President of the European Commission and the Prime Minister of Kazakhstan signed a Memorandum of Understanding (MoU) on a strategic partnership between the EU and Kazakhstan in the fields of raw materials, batteries, and renewable hydrogen. This was officially announced on the European Commission’s website (European Commission, 2022: 1).

As highlighted on the International Energy Agency (IEA) website, under the MoU on strategic partnership between the Republic of Kazakhstan and the European Union regarding sustainable raw materials, batteries, and renewable hydrogen value chains, the two governments aim to achieve closer integration of their sustainable value chains by leveraging Kazakhstan’s high potential in critical raw materials and the EU’s expertise in mineral development.

Critical Raw Materials

Critical raw materials for the energy transition are defined as “materials proven to be useful in supporting the development of low-carbon technologies.”

The EU is expected to become increasingly dependent on imports of rare earth metals for clean energy production. The energy transition will drive up demand for minerals used in clean energy technologies, raising concerns about the sources and security of supply for these critical materials. The shift from coal to gas will increase imports. Additionally, the EU may become the largest importer of “green” hydrogen (European Commission, 2022a). According to the IEA, to meet the Paris Agreement’s 2°C target, “mineral needs for clean energy technologies must quadruple by 2040.” Similarly, the World Bank estimates that if the number of electric vehicles reaches 140 million by 2030, demand for aluminum, cobalt, iron, lead, lithium, manganese, and nickel will increase by 1000%.

In response to this growing interest in rare minerals, the European Commission organized Raw Materials Week in Brussels from December 9–13, 2024. In this context, the Embassy of Kazakhstan hosted two meetings due to the country’s critical role in raw material extraction.

A few days ago, The EU included the Sarytogan graphite deposit, located in the Karaganda region of Kazakhstan, in the list of strategic initiatives. ²As a result, The European Commission is initiating the process of attracting investments in the development of the project ($62-344 million). This project is considered a key element in strengthening the industrial partnership between the European Union and the Republic of Kazakhstan, in the context of the EU’s green and digital transition.

Central Asia is one of the world’s major sources of metals and industrial minerals. The region’s importance lies primarily in the diversity of its mineral base, which includes exploitable reserves of many critical materials essential for clean energy applications.

The region holds geological potential for 22 critical materials. While germanium, gallium, indium, tellurium, and graphite are found in only one Central Asian country, all other elements are present in multiple countries. Kazakhstan has high geological potential for 16 of the 22 critical materials, making it a key source country for clean energy technologies in the region. Uzbekistan is the second-best equipped country, while Tajikistan and Kyrgyzstan also have high potential for certain critical materials.

Kazakhstan and Raw Materials

Kazakhstan hosts deposits of essential raw materials, including those critical for green hydrogen production. The country holds some of the world’s largest reserves and is the second-largest producer of chromium used in wind turbines. Kazakhstan’s reserves are estimated at 230 million metric tons, while global reserves are around 570 million metric tons. It also ranks fifth in the world for zinc reserves and eighth for ore reserves, and is among the top 20 countries for proven reserves of copper, cadmium, and bauxite. However, elements like lithium require further geological exploration in Kazakhstan, as existing data—collected during the Soviet era—is incomplete.

Kazchrome, a company based in Kazakhstan, claims to be the world’s largest producer of high-carbon ferrochrome based on chromium content.

Among critical raw materials, hydrogen is one of the most frequently discussed. To understand this, it is important to define green hydrogen: it is produced through the electrolysis of water powered by low-carbon electricity sources such as wind turbines and solar panels.

Kazakhstan is home to significant raw material and hydrogen reserves. The country has already signed agreements with the EU for the supply of green hydrogen. A green hydrogen production facility will be built in the Mangystau region by the German-Swedish company “SVE VIND.” This facility is designed to produce 2 million tons of green hydrogen annually—equivalent to one-fifth of the EU’s 2030 import target.

Currently, the EU imports some critical materials from Kazakhstan for clean energy technologies. In 2019, Kazakhstan accounted for 16% of the EU’s chromium imports, 7% of cadmium, and 7% of titanium. However, these imports remain low compared to Kazakhstan’s overall exports, particularly to China. As a result, the EU is inclined to increase the share of critical minerals imported from Kazakhstan. The EU also imports large quantities of other minerals used in various industries from Kazakhstan (e.g., Kazakhstan supplies 72% of the EU’s phosphorus, although phosphorus is not on the list of critical minerals for clean energy technologies). Based on this mineral trade, the EU may consider importing more critical materials for clean energy technologies from Kazakhstan and other Central Asian countries.

Indeed, leading German companies—Knauf Group, GP Günter Papenburg AG, Roxtec, and the German Lithium Institute (ITEL)—have joined forces to form a consortium for lithium mining using Kazakhstan’s deposits.

By the end of 2024, the EU and Kazakhstan had shown a tendency to intensify roundtable meetings to enhance cooperation on rare materials.

The first event took place on December 4, 2024, at the Embassy of Kazakhstan in Brussels. The embassy hosted a roundtable meeting on EU-Kazakhstan cooperation on rare minerals. Ambassador Margulan Baimukhan emphasized Kazakhstan’s vital role in critical raw materials. In a meeting held at the embassy on December 10, Ambassador Baimukhan stated that Kazakhstan possesses 33 of the 34 elements on the EU’s list of critical raw materials and is one of the world’s top ten copper producers.

The second event occurred on December 12, 2024. Euractiv organized a press conference to explore the future of EU-Kazakhstan relations in the CRM (Critical Raw Materials) sector and the new opportunities driven by the EU’s green and digital transitions. Kazakhstan is a major producer of critical raw materials and is becoming an increasingly important energy supplier for the EU. Metals and chemicals from Kazakhstan play a key role in supporting the EU’s green and digital transformation.

During the Euractiv event, speakers included Ingrid Cailhol, Team Leader for the Middle East and Central Asia at the European Commission’s DG INTPA; Dauren Mendeshev, Deputy General Manager for Strategy and Transformation at Eurasian Resources Group (ERG); and Bauyrzhan Mukayev, Independent Partner of the national company Kazakh Invest. Mukayev stated that Kazakhstan could supply 21 of the 34 critical minerals on the EU’s list. He also noted that Kazakhstan produces semi-finished products of rare materials such as ammonium perrhenate and ammonium metavanadate. Mukayev added that Kazakhstan aims to double its manganese sulfate supply, begin producing other cathode components such as nickel sulfate and cobalt sulfate, and increase production of finished products like vanadium, antimony, bismuth, selenium, tellurium, gallium, and lithium.

As Baurzhan Aitkulov, head of mining projects at Kazakh Invest’s main investment agency, stated: “Lithium could soon become a second energy source for the region… lithium could soon be a second oil for Kazakhstan.”

Kazakhstan’s Mineral Potential

Roman Vakulchuk, Head of the Climate and Energy Research Group at the Norwegian Institute of International Affairs (NUPI), stated:
“Kazakhstan possesses a wide variety of mineral reserves. What makes Kazakhstan quite unique is the relatively close proximity of different minerals within the country.”

According to Vakulchuk, “Kazakhstan is also becoming a key player in opening up to new markets. It is open to cooperation with many different partners and is built on a multi-vector policy. Kazakhstan is the main importer of minerals from other Central Asian countries.”
He emphasizes that Kazakhstan’s multi-sectoral policy makes it a significant player in the international trade of critical raw materials.

EU-Kazakhstan Cooperation and Strategic Infrastructure

Ingrid Cailhol from the European Commission noted:
“A Memorandum of Understanding was signed with Kazakhstan during COP27.”
Additionally, Kazakhstan has participated in the Minerals Security Partnership (MSP)—a win-win initiative that aims to balance the interests of both producing and consuming countries.

Representing the European Commission, Cailhol highlighted the continuous growth of EU-Kazakhstan relations and added:
“The EU also supports the TRANScaspian Middle Corridor (especially through the Port of Aktau) to facilitate trade exchanges within the region and between the region and the EU.”
She emphasized that the EU supports multi-level cooperation and investments in transport infrastructure that connects Europe and Central Asia via the Caspian Sea. According to Cailhol, the EU is Kazakhstan’s largest trading partner. Bauyrzhan agreed and added:
“Our relations with EU countries are steadily improving.”

In conclusion, Central Asian countries rank among the world’s top 20 producers of many critical materials. The region holds a significant portion of global reserves of critical materials such as chromium, manganese, lead, zinc, titanium, aluminum/bauxite, copper, cobalt, molybdenum, and iron ore.

From an individual country perspective, Kazakhstan holds the world’s largest reserves of several minerals and is the second-largest producer of chromium used in wind turbines. The country’s reserves are estimated at 230 million metric tons, while global reserves are estimated at 570 million metric tons. This underscores Kazakhstan’s potential to play a major role in the future development of wind energy, one of the main renewable energy sources.

Kazakhstan also ranks fifth in the world for zinc reserves and eighth for ore reserves, and is among the top 20 countries for proven reserves of copper, cadmium, and bauxite. According to available data, Kazakhstan has a total of 233 mining sites and deposits. For this reason, the EU considers Kazakhstan a key partner in the energy transition.