EU, Kazakhstan vow to ‘go beyond’ raw materials-based relationship 

While the economic exchange of critical raw materials between the EU and Kazakhstan is mutually beneficial, both actors agreed on the need to go beyond this relationship in order to strengthen it in the future.

As part of the EU Raw Materials Week, a high-profile panel of EU and Kazakh experts gathered at a Euractiv conference to discuss the role of trade and the supply of critical raw materials between the EU and Kazakhstan.

Over the past two decades, the European Union and Kazakhstan have developed a deepening relationship on critical raw materials (CRMs), driven by a growing mutual recognition of their common interests.

These minerals are essential for producing various products, such as electronics and renewable energy technologies. They are considered critical due to their economic importance, high supply chain risks and potential impact on strategic industries, making Kazakhstan a key supplier for the EU’s green and digital transitions.

According to MEP and former Polish Foreign Minister Włodimierz Cimoszewicz, Kazakhstan, as a major producer and even more so in the future, is crucial for the EU to implement its major projects such as the New Green Deal as a supplier of critical materials.

” Implementing this project together with Kazakhstan as a supplier of some essential materials can be our joint contribution to the fight against climate change,” he said.

A view shared by Kanat Sharlapayev, Kazakhstan’s Minister of Industry, who pointed out that of the 34 critical materials listed by the EU, 18 are already produced in Kazakhstan.

” We already have existing address environmental issues rapidly cooperation address environmental issues rapidly with many European companies in terms of supply. “Sharlapayev said, adding that he foresees an increase in the supply of materials that his country already produces, such as niobium, titanium, beryllium, rhenium and osmium.

Kazakhstan addresses the climate change challenge

As the largest nation in Central Asia, Kazakhstan has not been spared the effects of climate change, prompting the country to make plans to rapidly address environmental issues and move away from cheap fossil fuels.

Hydrogen and nuclear partnerships

The panellists recalled that signing the Memorandum of Understanding (MoU) on Strategic Partnerships on Sustainable Raw Materials, Batteries and Renewable Hydrogen Value Chains in 2022 has further strengthened their cooperation in the energy field between Kazakhstan and the EU.

“Kazakhstan, because of its size and geographical diversity, has access to a lot of very high-quality wind and a lot of high-quality sun,” Sharlapayev said, adding that there are areas in Kazakhstan that have 365 days of sunshine a year, which is one way to produce the green hydrogen that the EU so desperately needs to meet its climate goals.

The same goes for uranium, as Kazakhstan is an undisputed leader in uranium mining, accounting for 42% of world production, with the Kazatomprom National Atomic Company accounting for 22%, state fund Samruk Kazyna reported on 29 August.

This makes Kazatomprom the world’s largest uranium producer, with its subsidiaries, associates and joint ventures developing 26 deposits, grouped into 14 uranium mining companies, and attracting increasing attention from some EU countries, notably France, whose president visited Astana in early November.

“We have to link it somehow somehow what’s happened in Africa, in Niger, and the need to find alternatives to the Nigerian uranium “, said Dumitru Fornea from the European Economic and Social Committee (EESC). 

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EU technical assistance and development 

The panellists also stressed that the relationship between the EU and Kazakhstan is, at its core, a mutual one, as increased cooperation has seen the EU provide technical assistance and support for sustainable CRM mining practices, positioning the EU and Kazakhstan as key players in the global CRM industry.

“Kazakhstan has the resources, but it needs the technologies to develop its processing and extraction industry locally,” reminded Axel Goethals, CEO of the European Institute for Asian Studies, adding that the European Union doesn’t have many global mining companies.

He added that Europe has interesting technological research on thorium-based nuclear energy, which could add value to the cooperation between Kazakhstan and the European Union.

“Kazakhstan could be a pioneer in this field,” Goedhals said, pointing out that the investment costs for thorium reactors are lower than for uranium reactors. But the precious mineral is also cleaner, according to Dr Nygmet Ibadildin, Chair of International Relations at KIMEP University in Almaty.

“Uranium production is really widespread in Kazakhstan, but we also have several initiatives on thorium,” he said, adding, however, that despite some promising geological exploration, the development of thorium energy still needs further study.

Going beyond raw materials

However, as the discussion progressed, it became clear to all involved that the relationship between Kazakhstan and the EU goes far beyond the mere supply of raw materials.

“Nobody wants to build a relationship based only on raw materials. “EECS’s Fornea said, adding that such a relationship would inevitably reach a crisis point and that the raw materials aspect should be just one chapter of the relationship.

MEP Cimoszewicz shared the same views and said that the relationship should evolve to make Kazakhstan an exporter of transformed products. 

“I believe that we should talk with Kazakhstan not only about buying raw materials from that country but also about helping, processing and enabling Kazakhstan to become a final producer of many products needed in modern industry. “, he said.

He was further backed by Minister Sharlapayev, who said Kazakhstan could become a leader in green steel production with the available green energies being developed in the country.

Furthermore, the minister concluded that Kazakhstan can offer European companies an appealing destination for the Kazakhstan market and as a gateway to markets across Central Asia.

“I think it is also important for European countries and companies to look at Kazakhstan not only as a source but also as a destination,” he said, arguing that because of the country’s geographical location, it’s Central Asian neighbours rely on it for transport to and from the region.

According to Sharlapayev, such a development is a win-win situation, allowing for more regional economic development while deepening his country’s strategic relationship with the European Union.

Kazakhstan: Balancing to the best of its ability in the heart of Eurasia

As the largest Central Asian nation, situated on the fringes of the Russian and Chinese worlds but resolutely oriented towards the EU, Kazakhstan is performing a strategic balancing act to maintain its stability and position in the heart of Eurasia.

This article follows the Euractiv-organised policy debate “Strengthening EU-Kazakhstan relations – What role for trade and the supply of critical raw materials?” supported by the Embassy of the Republic of Kazakhstan to the Kingdom of Belgium.

[Edited by Alice Taylor]

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