Central Asia’s Strategic Minerals: A New Battleground for Global Powers

Central Asia holds a significant proportion of the world’s essential minerals, with considerable reserves of manganese, chromium, lead, zinc, and titanium. Kazakhstan, in particular, has emerged as a noteworthy player in the global rare earth elements (REE) market, positioning itself as a potential competitor to China, which currently dominates 70% of the world's production. Kazakhstan's potential in extracting metals such as scandium, yttrium, and the 15 lanthanides—vital for manufacturing technologies like computers, turbines, and automobiles—has garnered the interest of both the United States and the European Union. Both entities are eager to invest in Kazakhstan’s mining sector to reduce their dependence on Chinese REEs. Presently, the U.S. heavily relies on China for imports of yttrium and scandium, while the EU sources 98% of its rare earth elements from China.

Critical resources, particularly REEs and strategic metals, are indispensable for economic and technological advancement due to their essential role in producing a wide range of high-tech products. These resources are characterised by their scarcity, the complexity of their extraction and processing, and the concentrated geographical distribution of their deposits. As such, these materials have become the focus of intense international competition.

The United States and China are now engaged in a strategic contest for access to Central Asia's vast mineral wealth. This marks a notable shift in American engagement in a region traditionally influenced by Russia and China. Under the Biden administration, the U.S. launched the Economic Resilience Initiative for Central Asia (ERICEN) in 2022, allocating $25 million to diversify trade and boost regional investment. Meanwhile, China has reaffirmed its commitment to the region with significant financial aid pledges, as seen during the May 2023 China-Central Asia Summit, highlighting the geopolitical stakes involved.

The extraction and processing of these critical materials have become a key battleground, with the U.S. intensifying its involvement. The inaugural C5+1 Critical Minerals Dialogue in February 2024, and subsequent discussions between U.S. and Kazakh officials, demonstrate the U.S.'s deepening interest in Central Asia’s mineral resources. This heightened attention is also reflected in analyses by American experts, who increasingly view Central Asia's rare earth elements as a strategic opportunity to counter Chinese dominance.

China, on the other hand, is keen to maintain its strategic position and prevent the U.S. and its allies from accessing new critical resource reserves. This was evident following French President Emmanuel Macron’s visit to Kazakhstan and Uzbekistan in November 2023, which resulted in strategic partnerships in uranium extraction and processing with both French and Chinese firms.

In the competition for Central Asia's critical resources, the region's countries find themselves at a crossroads. They face both opportunities for economic development and the risks of geopolitical rivalry, environmental degradation, and socio-economic disparities. The intensifying competition underscores the need for Central Asian nations to navigate these challenges carefully, balancing the benefits of foreign investment with the imperative to preserve autonomy over their natural resources.