Menu
Menu
Menu
Rare earth metals (REM) are becoming one of the most valuable components of the global economy, playing a key role in the development of mechanical engineering, defense, aerospace, medical, and other industries, reads an article published by Al Jazeera.
New oil
According to Research Nester forecasts, in 2023-2035 the average annual growth rate of the global REM market will stand at 8%. According to the International Energy Agency, by 2040 the demand for rare earth metals will increase several times. At the same time, in the coming decades the risk of supply shortage is highly probable.
Due to high demand and low proven reserves, REMs are considered critical raw materials. Rare earth metals have essentially become the “new oil”. Countries that can realize their potential in this area will determine the vector of technological progress throughout the world.
Kazakhstan as a supplier of rare earth metals
Kazakhstan is one of the countries with significant reserves of rare earth metals. According to the World Bank, the country has about five thousand unexplored rare earth deposits, the total value of which is more than $46 trillion.
In recent years, against the backdrop of growing demand from high-tech sectors of the economy, as well as shortages, including those artificially created as a result of trade conflicts between countries, the interest in Kazakhstan’s REM industry has grown significantly. Kazakhstan, ensuring uninterrupted supplies of critical minerals, meets the growing global demand, which is increasing due to the energy transition and the development of the electric vehicle market. Since 2020, Kazakhstan’s REM exports have quadrupled in dollar terms. Today, Kazakhstani enterprises occupy leading positions among the world’s producers of titanium, beryllium, and tantalum.
The export of rare earth metals is a significant component of the country’s economic diversification. Kazakhstan considers the development of rare earth metal deposits one of its priorities and is actively attracting foreign investment and technology for the effective development of its deposits.
By 2026, Kazakhstan plans to increase the area of geological and geophysical exploration from the current one and a half million to at least 2.2 million square kilometers.
Last year, Kazakhstan adopted a Comprehensive Plan for the Development of the Rare and Rare Earth Metals Industry for 2024-2028. It plans to conduct exploration work to identify rare earth metals, implement investment projects for the technical re-equipment of industry enterprises, commission new production facilities, and establish the production of new types of REM products.
In addition, Kazakhstan is working intensively to improve its infrastructure for the export of rare earth metals, including modernizing the transport network and optimizing logistics.
International cooperation
In the context of increasing global competition for rare earth metals, many countries – primarily the United States and the European Union – are beginning to look for alternative sources of REM supplies. Kazakhstan, with its rich reserves of rare earth metals and being a reliable partner of Western countries, is the most obvious option. It is Kazakhstan that can reduce the dependence of the Global North on Chinese exports of rare earth metals, and generally push back China’s hegemony in this market.
Kazakhstan has already established business relations on issues of REM mining, processing and trade with the European Union, Great Britain, the United States, and South Korea.
The EU and Kazakhstan have initiated several projects on the supply of rare earth metals. Last year, the parties signed two memorandums of cooperation on critical raw materials.
Last year, Astana hosted a forum dedicated to cooperation between Kazakhstan and the European Union in the development of rare earth and rare metals. The forum discussed prospects for expanding trade and economic cooperation on critical raw materials and the possibility of joint projects for the extraction, processing and use of rare earth and rare metals. European colleagues assured their Kazakh counterparts that the European Union seeks to diversify supply sources and develop production in Kazakhstan using the formula “Kazakhstani raw materials + European investments”.
Another potential area for cooperation is India. The most populous country in the world, it now buys rare earth metals from Argentina and seeks to shorten the delivery route by finding a partner closer to its borders. And here, Kazakhstan is the best option.
Conclusion
The outlook for Kazakhstan as an exporter of rare earth metals looks promising. The country continues to improve its infrastructure and introduce new technologies in exploration and production. The country aims not only to export raw materials, but also to develop processing and production, thereby increasing the added value of the final product.
With rich natural resources, ambitious plans, and an open approach to foreign investors, Kazakhstan has every chance of becoming a key player in the global rare earth metals market.
