ASTANA — Global rare earth production has nearly quadrupled to 379,900 tons over the past two decades, driven by demand for digital technologies and clean energy. In Kazakhstan, the sector remains a small but emerging part of industrial output, reflecting its early stage of development within a rapidly expanding global market.
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Rare earth elements, a group of 17 metals essential for technologies ranging from microchips to wind turbines, are increasingly central to the global economy. Their unique physical and chemical properties make them critical for high-performance magnets, batteries and electronic devices.
At the same time, global supply remains highly concentrated, with more than 70% of mining and approximately 90% of processing located in China. This concentration shapes supply chains and increases the strategic importance of diversification. In this context, rare earths are increasingly viewed as instruments of geo-economic influence, as control over their production and processing can affect access to critical technologies and industrial development.
“Global demand for rare earth elements is very high and continues to grow steadily. The main drivers are electric vehicles, renewable energy, electronics, computers and smartphones. The transition to a digital economy is directly linked to the development of the rare earth market,” said Serik Konakbayev, an engineering geologist and head of operational geology at Solidcore Resources.
According to Konakbayev, this dominance is driven by a combination of factors, including relatively low labor costs, a developed industrial base and the availability of technologies, which provide a significant advantage in developing the sector. In this context, the global market is increasingly seeking to diversify supply, creating opportunities for new producers, including Kazakhstan.
Resource-based and industrial groundwork
Kazakhstan has one of the world’s largest mineral resource bases. According to the Ministry of Industry and Construction, more than 9,000 deposits are registered on the state balance sheet, including over 100 containing rare and rare earth elements. The country produces and processes several key metals, including tungsten, molybdenum, titanium, zirconium and rhenium. Associated elements such as selenium, tellurium, germanium, gallium, indium and scandium are also recovered.
Many of these elements are obtained as by-products of uranium, non-ferrous and precious metal mining, which requires complex processing technologies to ensure efficient extraction.
At the moment, the rare metals sector accounts for approximately 0.3% of industrial output, while its relatively low base coincides with growing global demand for rare and rare earth metals.
Regional capacity and technological gaps
Industrial capacity is concentrated in established metallurgical regions. The Ust-Kamenogorsk Titanium and Magnesium Plant supplies titanium and magnesium for aerospace and metallurgy. The Ulba Metallurgical Plant processes beryllium, niobium and tantalum used in nuclear energy and electronics. In Zhezkazgan, Zhezkazganredmet produces rhenium and osmium for high-temperature alloys and chemical applications.
Other enterprises contributing to the sector include vanadium concentrate production in the Kyzylorda Region and tungsten projects in the Almaty Region.
Despite the presence of individual processing facilities, the level of deep processing of rare and rare-earth metals in Kazakhstan remains limited. According to Konakbayev, due to a lack of technology and a relatively weak technical base, the country is still largely oriented toward raw material extraction and exports. He said the priority is to develop domestic technologies, build processing capacity and establish a full production cycle within the country.
“In fact, we have significant reserves, many of which were explored during the Soviet period. But it is necessary to actively develop processing infrastructure, attract investment and introduce modern technologies to ensure maximum extraction and full-cycle production,” said Konakbayev.
He added that some deposits, particularly molybdenum and tungsten sites that were active before the 2000s, are no longer widely developed due to shifting demand patterns. Similar conditions apply to lithium, tantalum and beryllium, where reserves exist but domestic demand remains limited.
Investment and shift toward processing
State policy is increasingly focused on expanding industrial capacity and developing deeper processing. A government-approved comprehensive plan for 2024-2028 provides for the launch of at least five new production facilities, the modernization of existing enterprises and the introduction of advanced extraction technologies.
Several projects have already been launched. A tungsten production facility has been commissioned at the Boguty deposit in the Almaty Region, and production of manganese sulfate monohydrate has been established.
Further projects aim to build new technological chains. In 2026, a gallium production line with a capacity of 15 tons per year is planned with the participation of Eurasian Resources Group (ERG), a Luxembourg-based mining and metals company with major operations in Kazakhstan. Other initiatives include lithium-ion battery recycling, the production of metallic rhenium and the development of battery materials.
Projects are also expanding into new segments of the value chain. A graphite project in central Kazakhstan is advancing to support battery material production. At the same time, a manganese processing cluster in the Pavlodar Region is being developed to produce electrolytic manganese and manganese dioxide, both of which are used in energy storage technologies.
Central Kazakhstan, particularly the Karagandy Region, is emerging as a key exploration area. In 2025, a new rare earth site was identified there, with ongoing geological and laboratory studies to confirm its resource potential.
“The forecast reserves of the Kuirektykol site amount to approximately 935,400 tons of rare earth metals. At present, Tau-Ken Samruk has obtained a license for solid mineral exploration, and detailed geological and laboratory studies are being carried out to confirm the reserves,” said Vice Minister of Industry and Construction Iran Sharkhan.
The government is also expanding the investment framework supporting the sector. This includes 16 special economic zones, the Astana International Financial Center (AIFC), the Minerals.e-Qazyna.kz digital platform and $1 billion in financing through the Development Bank of Kazakhstan. The main objective is to establish a full production cycle within the country.
“To form a new investment cycle, the investment policy concept until 2029 is being implemented. The conclusion of investment contracts will allow companies in priority sectors to receive tax and customs incentives, as well as in-kind grants,” said Sharkhan.
At an expanded government meeting in February, President Kassym-Jomart Tokayev highlighted growing global demand for critical materials and investor interest in Kazakhstan’s resource base.
“Investors from Western and other developed countries are showing strong interest in implementing such projects in Kazakhstan. This is our global competitive advantage, which we must use effectively for the benefit of the country,” he said.
International partners from the United States, Germany, Australia and China are already involved in exploration and development projects. According to the ministry, U.S.-based Cove Capital participates in projects involving tungsten, lithium and rare earth metals, while Australia’s Sarytogan Graphite Limited is advancing graphite production. A joint project with Germany’s Bergbau AG focuses on lithium deposits, with exploration investments of approximately $8 million and potential total investment reaching $500 million if reserves are confirmed.
Expanding market connections
Kazakhstan’s current export orientation is largely tied to China and Russia. Over time, the country aims to integrate into broader supply chains, including markets in the European Union and Asia.
As global demand for critical materials continues to expand, Kazakhstan is gradually developing the industrial and investment base needed to strengthen its position in the rare and rare earth metals market.
The article was originally published in Kazinform.
