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Kazakhstan Intensifies Efforts to Expand Battery Metals Production

ALMATY (Reuters) – Kazakhstan is taking significant steps to increase the production of essential metals for electric vehicle (EV) batteries, with plans to issue hundreds of new exploration licenses aimed at attracting investment in this burgeoning sector, as reported by the country’s industry minister.

As the former Soviet republic positions itself as a reliable supplier of critical materials, it does so amidst rising geopolitical tensions—especially with Russia’s threats to restrict exports and China’s increasing control over rare earth elements. Kazakhstan has already secured agreements with the European Union and the United Kingdom regarding the supply of vital minerals.

“Kazakhstan is known for its reliability… We’ve been serving global markets for a considerable time,” stated industry minister Kanat Sharlapayev in a recent interview.

This Central Asian country, which ranks as the ninth largest by land area yet remains sparsely populated, possesses resources for 90% of the elements in the periodic table. It has established itself as a key exporter of ferroalloys and gold, and is now looking to expand its influence in the battery materials market, targeting lithium, cobalt, manganese, nickel, and graphite, in response to the growing demand for such materials.

While Kazakhstan has been mining manganese for years, the government has recently begun processing manganese sulfate, with a goal of commanding 10% of the global market for this battery material. Additionally, the country supplies phosphates for fertilizers and is keen on processing materials required for lithium iron phosphate (LFP) batteries, which are increasing in demand.

“Scaling up the processing of battery-grade metals is an essential part of our strategy,” said Sharlapayev, a former Citigroup banker. “We already have production facilities, and now it’s a question of broadening our range of materials.”

The Russian Factor

Recent comments from Russian President Vladimir Putin have contributed to uncertainty in the global commodities market, as he suggested that Moscow may consider limiting exports of vital resources including uranium, titanium, and nickel in response to Western sanctions. Kazakhstan plays a crucial role in the global supply of uranium and titanium and holds about 2% of the world’s nickel reserves, although its current production levels are modest.

The country is also in the early stages of exploring its lithium deposits, another critical component for batteries. To facilitate this exploration and development, the cabinet has simplified and digitized the licensing process for exploration, resulting in a significant increase in the number of licenses issued—487 so far this year compared to 397 for all of 2023, according to ministry data.

Several major mining corporations, including BHP, Rio Tinto, First Quantum Minerals, Fortescue, and Teck Resources, are actively involved in exploration efforts in Kazakhstan. Furthermore, last month the European Bank for Reconstruction and Development (EBRD) announced its investment in a firm focused on graphite exploration in the country.

Despite being a member of Russian-led economic and security alliances, Kazakhstan has taken a neutral stance regarding the Russia-Ukraine conflict, has committed to adhering to Western sanctions against Moscow, and is actively engaged in developing alternative cargo transit routes that bypass Russia.

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