The race for rare earths is heating up in Central Asia

Amid a shortage of rare earths - essential to operate many technological devices - the US and EU are looking for new supplies from Central Asia.

Not only is the Trump administration interested in strategic minerals, but the European Union (EU) is also paying close attention to the rich metal resources in Central Asia.

In numerous meetings with Central Asian governments, US and EU officials appear particularly interested in expanding access to the region’s rich “critical minerals.”

A shortage of rare earth supplies is prompting the US and EU to seek new supplies from Central Asia. Illustration photo

US actively seeks cooperation opportunities with Kazakhstan

In recent days, senior officials in the Trump administration have been actively seeking opportunities to cooperate with Kazakhstan. On March 13, US Energy Secretary Chris Wright raised the issue of rare earths during a meeting with his Kazakh counterpart, Almassadam Satkaliyev, on the sidelines of an energy conference in Houston.

A day earlier, US Secretary of State Marco Rubio also issued a statement after talks with Kazakhstan's Deputy Prime Minister and Foreign Minister Murat Nurtleu, emphasizing that the US "looks forward to working with Kazakhstan to strengthen economic ties in the areas of energy, telecommunications, and critical minerals."

Europe boosts investment in Central Asian mining industry

The EU’s growing interest in strategic minerals is similar to the US’s. European Commissioner for International Partnerships Jozef Sikelak began a six-day tour of five Central Asian countries on March 12 to explore investment opportunities in the mining sector.

Critical minerals were one of four key topics discussed with Central Asian leaders during Mr. Sikelak’s visit, which aims to promote “best practices, create new jobs and strengthen economic resilience,” the EU statement said. Other goals of the trip include improving infrastructure in the transport, digital connectivity, energy and climate sectors, with a view to expanding trade between Central Asia and the EU. During his stop in Uzbekistan, Mr. Sikelak is expected to visit the Almalyk Mining and Metallurgy Complex.

Future investment opportunities

Earlier, in early March 2025, Uzbekistan announced a $2.6 billion initiative to develop the mining and minerals sector, creating attractive opportunities for investments from the US and Europe.

During his recent visit to France, Uzbek President Shavkat Mirziyoyev signed a $5 million mineral deal, according to Gazeta.uz on March 13. Under the deal, the French Geological Agency will “provide experience and knowledge to develop Uzbekistan’s national geological service” and support geological and technical research on strategic minerals.

The shortage of rare earths, which are needed to power many of the most important technological devices of the 21st century, is pushing the US and EU to look for new sources of supply from Central Asia. According to an analysis published by the Lowy Institute for International Policy (Australia) in late 2024, “a series of factors make Central Asia, especially resource-rich Kazakhstan, along with Uzbekistan and Tajikistan, the most viable alternative to traditional suppliers, especially China” .

However, the US and EU must quickly step up their efforts if they are to gain a significant market share in the region’s mining and minerals industry, where China has long established its dominance.

“China’s growing domestic demand for critical minerals, primarily related to microchip manufacturing and green energy, makes its strategic interests in the economic sphere of Central Asia particularly strong,” the Lowy Institute analysis found . “In fact, Beijing has taken the lead in this area, particularly in Kyrgyzstan and Tajikistan, where it controls most of the rare earth mining contracts.”

Although opportunities in current mining projects are limited, the US and EU can still gain a large market share in future projects.

“Central Asian leaders understand that without foreign investment, technology and expertise, they will find it difficult to exploit their domestic resource potential,” the Lowy Institute analysis notes. “They also recognize that closer cooperation will help them become leading producers of critical minerals, securing their place in global supply chains.”

In early March 2025, Uzbekistan announced a $2.6 billion initiative to develop its mining and minerals sector, creating attractive opportunities for investment from the US and Europe.

Source: https://congthuong.vn/cuoc-dua-gianh-dat-hiem-dang-nong-len-o-trung-a-378827.html