Kazakhstan is positioning itself to increase production of metals essential for electric vehicle (EV) batteries, issuing hundreds of new exploration licenses to attract fresh investment, according to the country’s industry minister in an interview with Reuters.
As Russia threatens export restrictions and China tightens its grip on rare earth elements, Kazakhstan promotes itself as a reliable supplier of most critical materials listed by the European Union. The Central Asian country has already signed agreements with both the EU and Britain for the supply of these crucial minerals.
“People know Kazakhstan is dependable. We’ve been serving global markets for a long time,” said Industry Minister Kanat Sharlapaev.
The ninth-largest country in the world by land area, Kazakhstan is sparsely populated but holds deposits of 90% of the periodic table’s elements. It is already a key exporter of ferroalloys, gold, and copper. The country aims to expand its market share in battery materials like lithium, cobalt, manganese, nickel, and graphite, which are in increasing demand.
Kazakhstan currently mines manganese and last year began producing manganese sulfate, with ambitions to capture 10% of the global market for this battery material. It also supplies phosphates for fertilizers and is exploring ways to process materials for lithium ferro phosphate (LFP) batteries, which are becoming more popular.
“Scaling up battery-grade metal processing is a major goal for us,” Sharlapaev added, noting that Kazakhstan has existing production facilities but is focused on broadening its range of materials.
Russian President Vladimir Putin has recently suggested Moscow might restrict exports of uranium, titanium, nickel, and other resources in response to Western sanctions. Kazakhstan, a key global supplier of uranium and titanium, also holds 2% of the world’s nickel reserves, though its current production is minimal. While it has yet to exploit its lithium deposits, exploration is underway.
To accelerate exploration and development, Kazakhstan has streamlined its exploration license procedures, moving the process online. As a result, 487 licenses have been issued this year, up from 397 in 2023.
Major international mining firms, including BHP, Rio Tinto, First Quantum Minerals, Fortescue, and Teck Resources, are involved in exploration projects in Kazakhstan. Additionally, the European Bank for Reconstruction and Development (EBRD) recently acquired a stake in a company exploring graphite in the country.
Despite being a member of Russian-led economic and security blocs, Kazakhstan has maintained neutrality in the Russia-Ukraine conflict, pledged to comply with Western sanctions on Moscow, and is actively developing transit routes that bypass Russia.
