Harnessing Kazakhstan’s rare earth potential

Kazakh President Kassym-Jomart Tokayev recently highlighted rare earths as the “new oil” for Kazakhstan’s economy. File photo: Sputnik, Kremlin pool photo (via AP)

aThe world is accelerating the transition to clean energy using cutting-edge technology, and demand for rare earths is increasing worldwide. India, the third-largest carbon emitter, is pivoting to renewable energy and facing increasing demand for rare earths. Despite being the fifth largest country in the world for rare earth elements, India lacks advanced extraction technology and is heavily dependent on China for imports. Amid supply chain disruptions and security concerns related to China’s dominance in this sector, New Delhi is seeking to diversify its sourcing through agreements with the United States, Latin America, and African countries to reduce dependence on China. is progressing. In this context, Kazakhstan has emerged as a promising and strategically close alternative country.

china monopoly

China accounts for more than one-third of the world’s rare earth reserves and about 70% of its production, while India procures about 60% of its imports from Beijing. This high dependence is due to India’s insufficient domestic production to meet demand in critical sectors such as electronics, defence, and clean energy.

However, China’s past actions in interfering with critical technology and mineral supplies due to bilateral issues, as it seeks to control key mineral industries, are causing concern. China has a monopoly on global and Indian demand for rare earths and uses that position to dictate the terms of supply chains. China recently suspended supplies of antimony, which is essential for flame retardants, solar cells, batteries and military equipment, citing national security concerns. This move, along with a December 2023 ban on key technologies for rare earth extraction and magnet production, will strengthen China’s dominance in this sector.

Meanwhile, declining supplies of ore from Russia, mainly antimony concentrate used in wind and solar energy production, are raising concerns in China, the largest producer and consumer of rare earths. Russia’s invasion of Ukraine further exposed the risks of supply chain centralization, leading India and the West to seek sustainable and diversified alternatives.

Why Kazakhstan matters

In this context, Kazakhstan, a close ally of India, offers a viable alternative to meet India’s rare earth needs. Kazakhstan is one of the richest sources of rare earths. With New Delhi increasing its engagement with Astana through connectivity initiatives such as the Connect Central Asia policy and the International North-South Transport Corridor, a rare earths partnership could bring significant economic benefits to both countries. Kazakhstan has 15 of the 17 known rare earth elements, and advanced extraction techniques could undermine China’s advantage in this field. Astana already has mining agreements with Japan and Germany, while the United States, South Korea and the European Union have recently joined exploration and production agreements to exploit rare earth reserves.

The amount of rare earth elements such as dysprosium mined in Kazakhstan is expected to increase significantly from 2024 to 2029. Kazakh President Kassym-Jomart Tokayev recently highlighted rare earths as the “new oil” for Kazakhstan’s economy. The country is one of three full-cycle plants in the world for beryllium and scandium, which are essential to telecommunications, and one of four global producers of tantalum and niobium, which are essential to nuclear reactors and clean energy. is. Astana is expanding its role in rare earth and strategic mineral production with investments in tungsten, battery materials and magnets. The vast mining potential of rare earth elements can complement India’s efforts in this field. The Kazakh government is prioritizing advanced technologies and partnerships to strengthen its presence in emerging fields such as lithium and high-temperature alloys. In addition, Kazakhstan’s metallurgical plants extract bismuth, antimony, selenium, and tellurium, and use imported technology to produce gallium from alumina and indium from polymetallic ores, all of which are essential for renewable energy production. is.

Future direction

India’s COP29 commitment to achieve 500 GW of renewable energy by 2030 highlights the importance of rare earth elements like dysprosium in advancing clean energy technology. India lacks capacity across the rare earth supply chain, but plans to increase mining production by 400% over the next 10 years.

India’s over-reliance on China and the potential for global change following the change in the US administration highlight the need for diversification. Cooperation between India and Kazakhstan will strengthen India’s resource security, reduce dependence on China and support sustainability by sourcing rare earths through domestic mining sources and import sources through closer partners You can. Apart from the challenges of direct connectivity between India and Kazakhstan, both countries lack the necessary extraction technology. Nevertheless, the India-Central Asia Rare Earths Forum, proposed by National Security Adviser Ajit Doval during the second India-Central Asia Summit in Astana, is an initiative for partnership and the private sector. aims to facilitate investment and potentially address these challenges. It could encourage bilateral training, joint mining operations, the sharing of geological data and expertise, and the creation of regional markets to promote sustainable mining practices and reduce dependence on China.

Ayushi Saini, Junior Research Fellow, JNU final year PhD candidate specializing in Central Asia