In a notable visit to Brussels for the European Commission’s Raw Materials Week, Kazakhstan’s Minister of Industry and Construction, Kanat Sharlapaev, shed light on his country’s impressive strides in meeting the EU’s critical raw materials requirements. As a reliable partner, Kazakhstan aims to expand its supply capabilities and further strengthen trade and investment links with the European Union.
Driving Sustainable Raw Material Supplies:
Over a year ago, the EU and Kazakhstan forged a strategic partnership focusing on critical raw materials, batteries, and green hydrogen. Minister Sharlapaev expressed Kazakhstan’s unwavering support for the EU’s objective of diversifying sustainable supplies of critical minerals. With abundant raw materials, unique production capacities, and geographical proximity, Kazakhstan is confident in its ability to make a significant contribution to achieving these shared goals.
Extensive Resource Potential:
The negotiations between Minister Sharlapaev and European Commission Vice-President Maroš Šefčovič highlighted the need for mutually beneficial cooperation on critical raw materials. Kazakhstan boasts an impressive array of natural resources, including lithium, chromium, uranium, barite, rhenium, zinc, lead, manganese, bauxite, copper, and gold. Additionally, the country holds substantial fossil fuel reserves in the form of coal, oil, and gas.
Enabling Europe’s Energy Transition:
Apart from allowing Europe to diversify its traditional energy supplies, Kazakhstan plays a crucial role in facilitating the transition to low-carbon and renewable energy sources. For instance, the country’s mining industry provides many of the materials required for electric vehicle batteries, supporting the push towards sustainable transportation. With the capacity to produce roughly half of the 34 minerals considered critical for the EU, Kazakhstan is well-equipped to aid Europe’s energy aspirations.
Meeting Rising Demand:
Vice-President Šefčovič highlighted Europe’s current ability to cater to only 1% of global critical minerals production. However, the rise in demand is projected to accelerate significantly, particularly for lithium and rare earth metals. By 2030, lithium demand is expected to increase by 12 times, rising to 21 times by 2050. Similarly, rare earth metals will demand up to five times more by 2030 and six times more by 2050. Given this scenario, Vice-President Šefčovič emphasized the necessity of diversifying external sources of supply through closer cooperation with sustainability-focused partners like Kazakhstan.
Collaboration for Sustainability:
Europe is well-positioned to offer valuable expertise to Kazakhstan in its pursuit of sustainable resource utilization. With world-leading advancements in the electrification of heavy machinery and intelligent mining practices, European companies can assist Kazakhstan in reducing the carbon footprint of its mining sector. Additionally, European technological advancements, such as modern airborne exploration methods, can aid in efficient resource extraction and processing.
Building Bridges: Agreements and Investments:
The visit witnessed the signing of two agreements between Kazakh and EU companies, signifying the commitment to cooperation in critical raw materials. Furthermore, the European Commission and the European Bank for Reconstruction and Development announced their financial support for lithium exploration and the sustainable processing of tungsten by Kazakhstan’s national mining company. Such collaborative efforts pave the way for increased investment in exploration and production.
Strengthening Trade Routes:
To maintain a reliable and predictable supply chain, both parties must focus not only on what Kazakhstan can supply but also on what Europe is willing to invest in. Kazakhstan has made significant investments in its Middle Corridor trade route, featuring upgraded railways and port infrastructure. Encouraging European companies to utilize this trade route through long-term agreements would provide additional stimulus for both parties. Moreover, Minister Sharlapaev emphasized the affordability of transportation when manufacturing processes are conducted in Kazakhstan, making it an attractive destination for European companies.
Kazakhstan, with its rich reserves of critical raw materials and strong commitment to sustainability, emerges as a key partner for the European Union in achieving its goals for a greener and more diversified supply chain. As the EU strives to reduce dependency on external sources and increase its self-sufficiency, Kazakhstan’s potential contributions in critical minerals supply, sustainable practices, and trade routes position it as an essential ally in Europe’s energy transition.
Market Capital Research 