Kazakhstan Emerges as Global Critical Mineral Hub with Dual Strategic Investments

Eurasian Resources Group (ERG) is positioning Kazakhstan to reshape the global supply chain for essential industrial materials through two transformative projects that address critical supply chain vulnerabilities.

Gallium Production Reshapes Market Concentration

The signing of a long-term gallium supply agreement with Mitsubishi Corporation during President Tokayev’s state visit to Japan represents a watershed moment for Kazakhstan’s mineral export profile. The inaugural commercial gallium production facility will enter operation in Q3 2026, with an initial capacity of 15 metric tons annually—a volume sufficient to elevate Kazakhstan to the world’s second-largest gallium producer behind China.

The investment exceeds US$20 million and leverages technology integration from multiple sources: process solutions from the Pavlodar aluminum plant (part of Aluminium of Kazakhstan) combined with proprietary extraction technology developed by ERG’s research division. The breakthrough lies in gallium recovery methodology that processes extremely low-grade ore deposits while simultaneously improving alumina quality and reducing material waste—a dual-efficiency outcome that distinguishes this facility from conventional operations.

Global gallium production reached approximately 760 metric tons in the previous year. The supply landscape remains dominated by China, with marginal contributions from Japan, South Korea and Russia. This geographic concentration has intensified discussions among Western governments and semiconductor manufacturers, particularly following Beijing’s imposition of export controls on gallium alongside antimony and germanium—materials fundamental to defense systems, semiconductor fabrication and renewable energy infrastructure.

Central Asian Iron Production Transforms Regional Metallurgy

Parallel to gallium development, ERG announced a strategic partnership with Midrex Technologies and Primetals Technologies to construct a hot briquetted iron (HBI) production facility in Rudny, Kazakhstan’s Kostanay region. The 2 million metric ton annual capacity project requires total investment exceeding US$1.2 billion and will function as one of Central Asia’s most advanced metallurgical installations.

This HBI facility represents Kazakhstan’s first domestic production of this intermediate iron product, addressing regional and global demand for reduced carbon-intensive steel production pathways. The dual-project combination signals ERG’s broader strategy to position Kazakhstan as an alternative supply source for materials where geopolitical dependencies have become structurally problematic.

Strategic Implications for Supply Chain Resilience

The convergence of these investments reflects a fundamental market recalibration. As China maintains licensing requirements on critical mineral exports despite recent diplomatic discussions, Kazakhstan’s emergence as a diversified producer of both specialty metals and processed iron products offers manufacturers and governments a geopolitical hedge against concentrated supply chains. For semiconductor and defense sectors dependent on gallium availability, the 15 metric ton annual capacity from Kazakhstan provides material relief to supply constraints that have historically created production bottlenecks.