The EU's Intense Competition for Key Minerals in Central Asia

Not long ago, critical raw materials [CRMs] - metals and minerals vital to technology, green energy, and defense - were only of interest to experts and niche industries. Today, they have become central to geopolitical priorities. Recent high-level agreements, such as the US-Ukraine mineral agreement, have further intensified the debate over the strategic importance of critical minerals.

The recently held EU-Central Asia Summit also focused on CRMs, with an emphasis on ensuring access to key mineral resources crucial for Europe's expanding defense sector and its green transition. This summit marked the first meeting between EU and Central Asian leaders, a significant milestone that launched a €1.2 billion investment plan, including €2.5 billion for critical raw materials. They approved the EU-Central Asia "Statement of Intent" on resource-restricted substances and the roadmap for 2025-2026 under the EU-Kazakhstan Memorandum of Understanding.

As part of all these efforts, European companies are increasingly interested in Central Asia.

In 2023, German company HMS Bergbau AG announced it would invest $8 million in lithium exploration in Kazakhstan, with the potential to increase investment to $500 million if reserves are confirmed.

In August 2024, the European Bank for Reconstruction and Development acquired a 17.36% stake in Saratogan Graphite Company, which is developing a graphite mine in the Karaganda region of Kazakhstan.

In March 2025, French company Orano signed an agreement with Navoiyulyan of Uzbekistan to lay the foundation for uranium mining projects.

KfW IPEX Bank of Germany and AKA Bank have agreed to provide €146 million in funding for a new copper smelter at Almalyk Mining and Metallurgical Enterprise in Uzbekistan, significantly enhancing local processing capacity and creating job opportunities.

In Kyrgyzstan and Tajikistan, the EU strategy has already begun to make some progress. In Tajikistan, the EU is supporting the upgrade of power grid infrastructure and the completion of the Rogun hydropower station, which provides essential energy for future potential mining and processing operations. Meanwhile, Kyrgyzstan benefits from EU-supported initiatives aimed at improving logistics infrastructure and enhancing access to remote mineral resources. For example, the rich titanium reserves located in Kyrgyzstan's Kyzyl-Ombul area.

According to the Stockholm International Peace Research Institute, critical minerals are increasingly becoming the focus of geopolitical competition. As countries seek to ensure the security of their supply chains for these important materials, they are impacting the global power structure. The US and the EU are working to reduce their dependence on China by investing in new supply chains.

Meanwhile, China and Russia are using their control over existing supplies to enhance their global influence. These competing strategies are making international cooperation more difficult, turning the search for critical minerals into a power struggle.

Source: Diplomatist

Original article: https://www.toutiao.com/article/1832186245543049/

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