Kazakhstan, EU sign rare earth agreement worth 3 million euros

Astana, Mar 13 (EFE).- Kazakhstan and the European Union (EU) signed Thursday an agreement on rare earth metals worth 3 million euros during European Commissioner for International Partnerships Czech Jozef Síkela’s visit to the Central Asian country.

“Europe needs these critical raw materials to modernize its economy, and Kazakhstan, with its vast reserves, is a natural partner,” Síkela told a press conference after talks with Kazakh Foreign Minister Murat Nurtleu.

The European commissioner added that he was pleased with the signing of a new agreement between Astana and the European Bank for Reconstruction and Development (EBRD) to expand “cooperation in critical raw materials.”

Apart from cooperation with Kazakhstan, Brussels is interested in creating a reliable infrastructure for the supply of rare earth metals and their derivatives to consumers.

“The Trans-Caspian Transport Corridor is a game-changer. It can reduce transit times between Europe and Asia to just 15 days or less, unlocking new opportunities for trade and investment across the region,” he said.

Kazakhstan commits to rare earth metals

Kazakhstan, the largest country in Central Asia, has joined the search for rare metal deposits in its vast territory to attract more investment for the country, as it did at the dawn of its independence with oil and gas reserves.

According to the country's National Geological Survey and Ministry of Industry, lithium reserves in seven deposits in eastern Kazakhstan alone amount to 100,000 tons and are valued at billions of dollars.

Lithium is one of the most important minerals for the electric vehicle industry, as it is the main component for battery production.

In total, according to the Kazakh government, the country produces 16 of the 30 strategically important rare earth metals and, with investments and advanced technology, the number could rise a further nine.

Alternatives to the Asian giant

China is currently the global leader in the rare metals market.

According to the International Energy Agency (IEA), by the end of 2024, China controlled “60 percent of the global rare earth metals production market and 90 percent of its processing.”

The U.S. Geological Survey says that China also has the world's largest reserves of rare earths, 44 million tons.

In this scenario, Kazakhstan believes it has the potential to become a good alternative to its neighbor, attract new investments, and solve problems in geological exploration.

The European Union, for its part, is ready to cooperate with Astana to diversify its sources of supply of rare metals and reduce its dependence on China. EFE

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