German company to start building lithium plants in Kazakhstan by 2029

The East Kazakhstan region to host new German lithium processing plants / Photo: Shutterstock, photo editor: Dastan Shanay

Two lithium processing facilities will begin construction in the Ulan district of the East Kazakhstan region by 2029, according to regional governor Nurymbet Saktaganov. He made the announcement during a recent session of the regional maslikhat (local council), as reported by the YK-news.kz portal.

«Construction of two large industrial facilities in the Ulan district is planned for 2029. These include a lithium mining and processing plant, as well as a facility to process pegmatite ores for the production of lithium oxide concentrate,» Saktaganov said.

The project is being developed by the German company HMS Bergbau. Earlier announcements indicated that HMS Bergbau would begin constructing a lithium plant in partnership with Kazakhstani firm Alatau Lithium in 2026. The pegmatite ore processing facility will be built in collaboration with Kazakhstan-based Creada Corporation.

According to the official eGov.kz portal, Alatau Lithium is co-owned by HMS Bergbau and Atazhan Kenzhebayev. Creada Corporation was founded by KAZ Lithium Ltd., which is registered with the Astana International Financial Centre and owned by Yerlan Issekeshev, the older brother of Asset Issekeshev, who served as an aide to President Kassym-Jomart Tokayev from Feb. 2022 to Sept. 2023.

According to Kazakhstan’s Ministry of Industry and Construction, there are seven lithium deposits in the Ulan district. A mining and processing plant is planned at the Verkhne-Baimurzinskoye deposit, while a pegmatite ore processing facility will be built at the Akhmetkino deposit.

Media reports have cited varying investment estimates for the projects, ranging from $450 million to $700 million.

HMS Bergbau AG is one of Germany’s leading independent companies involved in the exploration and production of solid minerals. The company operates mining projects in the U.S., Singapore, South Africa, Indonesia, Poland, the UAE and Botswana. It also has offices in China, India, Kenya, Malaysia, Pakistan, Sri Lanka, Bangladesh and Vietnam.

Lithium is a key component in the production of batteries, electric vehicles, glass, lubricants and pharmaceuticals.