Kazakhstan’s Emerging Role in Rare Earth Elements

Kazakhstan is positioning itself as a significant player in the rare earth sector, with its President highlighting rare earths as the “new oil” for its economy. The global transition towards cleaner energy technologies has accelerated the demand for rare earth elements.

India's Rare Earth Dependency

• India, a major carbon emitter, is shifting towards renewable energy but heavily relies on China for rare earth imports.
• Despite being the world’s fifth-largest holder of rare earth elements, India's advanced extraction technology deficiency compels reliance on China.
• China controls about 70% of global rare earth production, and India sources around 60% of its rare earth imports from China.

Challenges and Geopolitical Concerns

• China's dominance in rare earth supply chains raises security concerns, demonstrated by recent supply halts of crucial minerals like antimony.
• Russia's invasion of Ukraine has further exposed supply chain vulnerabilities, prompting nations to seek diversified sources.

Kazakhstan as a Strategic Alternative

• Kazakhstan holds 15 of the 17 known rare earth elements, with agreements for extraction with countries like Japan and Germany.
• Potential for significant growth in rare earth element extraction, including dysprosium, from 2024 to 2029.
• Kazakhstan hosts full-cycle beryllium and scandium factories and is a key global manufacturer of tantalum and niobium.
• The nation is prioritizing investments in advanced technologies for strategic minerals, complementing India's efforts.

India-Kazakhstan Collaboration Opportunities

• India’s 500 GW renewable energy target by 2030 stresses the need for rare earth elements like dysprosium.
• Collaboration could enhance India's resource security, reduce dependence on China, and encourage sustainable extraction practices.
• The ‘India-Central Asia Rare Earths Forum’ proposed by Ajit Doval aims to boost partnerships and investment in the sector.

Kazakhstan’s strategic partnerships and advanced technological capabilities offer India an opportunity to diversify its rare earth supply chains, reducing dependency on China and supporting sustainable industrial growth.