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Securing supply: Kazakhstan opens rare earth deposits to US, Europe and China

Казахстан предложит США, Европе и Китаю месторождения редкоземельных металлов
Kazakhstan opens deposits to global bidders / Photo: Uglevodorody.ru, photo editor: Dastan Shanay

Kazakhstan’s Minister of Industry and Construction Kanat Sharlapaev says companies from the U.S., the European Union and China can bid for rights to the country’s rare earth and rare metal deposits at government-held auctions. Competition among major global players for these critical materials — essential for renewable energy, electric vehicles and dual-use goods — could help Kazakhstan generate more revenue.

«It is fair practice [to sell the rights to rare earth deposits to foreign companies at auctions]…  I support the auctioning of some deposits with proven reserves,» Sharlapaev said in response to an inquiry from Kursiv.media.

According to him, Kazakhstan already conducts subsoil auctions for this purpose.

«I encourage you to look at our most recent auctions. This is exactly how the state operates now. If there are proven reserves, the government typically puts them up for auction, allowing those interested in developing these deposits to participate,» he said.

Official results of these auctions are published later. Previous reports suggested that U.S. President Donald Trump planned a $500 billion deal with Ukraine for rare earth metal deposits, potentially leveraging funds already allocated by the U.S. to support Ukraine. However, subsequent reports in Western media suggested that Ukraine’s deposits were not valued at such a high amount. The details of the agreement are still being finalized, as Ukraine insists on obtaining U.S. security guarantees. President Volodymyr Zelenskyy said his country has offered the U.S. cooperation on its rare earth fields. Earlier, Ukraine extended a similar offer to EU countries.

On Feb. 24, Russian President Vladimir Putin announced at a Kremlin meeting that Russia plans to develop a full-cycle rare earth and rare metal industry, from extraction to the production of high-tech finished goods. In an interview with Russian journalist Pavel Zarubin after the meeting, Putin said it was necessary to assess the actual extent of Ukraine’s rare earth resources. He also suggested that U.S. companies participate in projects to develop such deposits in Russia.

«By the way, we would be open to cooperation with our American partners – and when I say ‘partners’ I mean not only administrative and government agencies but also private companies – as long as they show interest in working together. It is important to emphasize that Russia possesses significantly – I want to stress this – significantly larger resources of this kind than Ukraine. Russia is one of the uncontested leaders when it comes to rare and rare-earth metal reserves. We have deposits in the north, in Murmansk, and in the Caucasus, in Kabardino-Balkaria, as well as in the Far East, in the Irkutsk Region, in Yakutia and Tuva,» Putin said.

According to him, these projects will be highly capital-intensive and require significant investment. Putin also included similar projects in the so-called «new regions» that Russia annexed from Ukraine — territories not recognized by Western countries — on the list of initiatives proposed for U.S. cooperation.

On Feb. 25, Kazakhstan’s Ministry of Industry and Construction reported the discovery of sites containing 2.6 million tons of rare earth metals, identified in 2024. The findings also include 400,000 tons of tungsten and 500,000 tons of niobium. Additionally, Kazakhstan identified the Kuirektykol deposit, which holds approximately 800,000 tons of rare earth metals, including cerium and lanthanides. In total, 38 promising areas containing various solid minerals have been identified.

Kazakhstan’s Prime Minister Olzhas Bektenov recently stated in response to a parliamentary inquiry that geological exploration conducted between 2020 and 2024 in the East Kazakhstan region confirmed reserves of zinc, beryllium and tungsten. Moreover, the region has proven reserves of other solid minerals, including copper and lead.