Turkey is seeking to collaborate with China to process a recently discovered deposit of rare earth elements, aiming to attract Chinese electric vehicle (EV) and battery manufacturers. This potential partnership could boost Turkey’s appeal as a strategic location for these industries.
In October, Turkey plans to send Energy Minister Alparslan Bayraktar to China to lead a delegation for high-level discussions, according to sources familiar with the situation. This move aligns with Turkey’s recent efforts to join the BRICS group, which includes China and Russia.
Turkey hopes a successful deal could encourage Chinese companies, such as BYD Co., the world’s largest electric car manufacturer, to consider establishing battery production facilities in Turkey. This follows BYD’s recent agreement to produce EVs in the country. Earlier in July, Turkish President Recep Tayyip Erdogan met with Chinese President Xi Jinping in Kazakhstan, where they discussed potential cooperation in developing rare earth metals.
Neither Turkey’s Energy and Natural Resources Ministry nor China’s Ministry of Commerce commented on the matter.
Two years ago, Turkey discovered a significant reserve of rare earth elements in Beylikova, near Eskisehir in central Anatolia. The Energy Ministry has announced its readiness to construct a refinery to process these raw materials.
“We are continuing our efforts to establish an industrial-scale facility that will position our country as a key player in the global rare earth supply chain,” said Turkey’s Industry and Technology Minister, Fatih Kacir, last month. Turkey aims to be a major player across the supply chain, from raw materials to the production of finished EVs and batteries.
China has maintained a dominant position in the mining and refining of rare earth elements over the past 30 years, which are critical for industries ranging from wind turbines to military hardware and electric vehicles. This dominance has raised concerns in both Washington and Brussels, as they seek to diversify their supply chains for critical minerals, despite facing numerous challenges, including technical, regulatory, and social issues.
Chinese manufacturers are also looking for easier access to the European Union, with which Turkey has a customs agreement, especially as the EU begins imposing tariffs on Chinese-made EVs. BYD has already signed an agreement to build a factory in Turkey, and the country has also held separate talks with other Chinese automakers, such as Chery Automobile Co., SAIC Motor Corp., and Great Wall Motor Co.
According to the Chinese state-run Global Times, Turkey’s rare earth discovery presents a potential opportunity for cooperation between China and Turkey.
Turkey plans to refine the rare earth elements found in Beylikova to achieve the highest possible purity, positioning itself as a crucial player in the rare earth supply chain.