Kazakhstan is accelerating its efforts to become a leading producer of metals essential for electric vehicle (EV) batteries. The Central Asian nation plans to issue hundreds of new exploration licenses to attract fresh investments, as highlighted by Industry Minister Kanat Sharlapayev in a recent interview with Reuters.
Promoting itself as a reliable supplier of critical materials identified by the European Union, Kazakhstan is stepping up its efforts at a time when Russia is considering export restrictions and China is tightening control over rare earth elements.
To strengthen its position in the global battery materials market, Kazakhstan has already signed agreements with the European Union and the United Kingdom for the supply of key minerals. “Kazakhstan has a long-standing reputation as a reliable supplier,” said Sharlapayev, emphasizing the country’s commitment to providing crucial resources to international markets.
Although Kazakhstan is the world’s ninth-largest country by land area, it is sparsely populated but rich in natural resources, with deposits of about 90% of the elements in the periodic table. The nation is already a major exporter of commodities like ferroalloys, gold, and copper and is now focused on expanding its presence in the battery metals sector, including lithium, cobalt, manganese, nickel, and graphite.
Kazakhstan has started processing manganese sulphate and aims to capture 10% of the global market for this battery material. The country also supplies phosphates for fertilizers and plans to scale up its production capabilities for lithium iron phosphate (LFP) batteries, which are increasingly in demand. “We are keen on building scalable processing facilities for battery-grade metals,” said Sharlapayev, who has a background in banking with Citigroup.
In the face of geopolitical tensions, particularly with Russia’s potential restrictions on uranium, titanium, nickel, and other commodities, Kazakhstan’s strategy to expand its mining sector gains further importance. The country is a significant global supplier of uranium and titanium and possesses 2% of the world’s nickel reserves, though its current output is minimal. Efforts to explore and develop lithium deposits are also ongoing.
To expedite mining development, Kazakhstan has streamlined its licensing procedures and moved them online, resulting in a significant increase in the number of issued licenses—487 so far this year, compared to 397 for all of 2023. Leading global mining companies, such as BHP, Rio Tinto, First Quantum Minerals, Fortescue, and Teck Resources, are already active 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 region.
Despite being part of Russian-led economic and security blocs, Kazakhstan has remained neutral in the Russia-Ukraine conflict, pledged to comply with Western sanctions against Moscow, and is actively working on developing alternative cargo transit routes that bypass Russia.
By capitalizing on its vast natural resources and strategic location, Kazakhstan is positioning itself as a key player in the global supply chain for battery metals, attracting significant interest from investors and international partners.
