Tapping into Kazakhstan’s rare earths potential

/ Editorials, English /

Tapping into Kazakhstan’s rare earths potential

(Source – The Hindu, International Edition – Page No. – 8)

Topic: GS2 – International Relations

Context

  • India’s heavy reliance on China for rare earth elements highlights the need for diversification due to global shifts after recent U.S. regime changes.

Introduction

  • Growing global demand for rare earths driven by cleaner energy technologies.
  • India, the third-largest carbon emitter and fifth-largest holder of rare earths, depends on China for imports due to limited extraction technology.
  • To mitigate supply chain vulnerabilities and security concerns, India is diversifying its sources through partnerships with the U.S., Latin America, and Africa, with Kazakhstan emerging as a strategic alternative.

China’s Monopoly

  • Dominance:
  • China holds over one-third of global rare earth resources and produces about 70%.
  • Approximately 60% of India’s rare earth imports come from China.
  • Supply Risks:
  • India’s dependence on China makes it vulnerable to supply disruptions (e.g., recent antimony export halts).
  • Geopolitical Concerns:
  • Russia’s invasion of Ukraine has exposed vulnerabilities in supply chains, prompting India and the West to seek more sustainable alternatives.

Why Kazakhstan is Important

  • Kazakhstan is a close ally of India and a potential source for rare earth elements.
  • Resource Richness:
  • Kazakhstan has significant deposits of rare earths and is enhancing its collaboration with India through initiatives like the ‘Connect Central Asia’ policy.

Kazakhstan’s Rare Earth Reserves

  • Holds 15 out of the 17 known rare earth elements.
  • With advanced extraction technologies, it can potentially challenge China’s dominance.
  • Established extraction agreements with Japan, Germany, and new partnerships with the U.S., South Korea, and EU.
  • President Kassym-Jomart Tokayev calls rare earths the “new oil” for Kazakhstan’s economic future.

Strategic and Emerging Minerals

  • Hosts one of the world’s top factories for beryllium and scandium, crucial for telecommunications.
  • Among top global producers of tantalum and niobium, essential for nuclear and clean energy.
  • Expanding investments in rare earths, tungsten, battery materials, and magnets.

Complementing India’s Efforts

  • Kazakhstan’s mining potential aligns with India’s energy goals and sustainability targets.
  • Focus on advanced technologies and partnerships to enhance capabilities in lithium and other critical materials for renewable energy.

The Way Forward

  • India aims to achieve 500 GW of renewable energy by 2030, emphasizing the importance of rare earth elements like dysprosium.
  • Plans a 400% increase in mining output over the next decade to reduce dependency on Chinese imports.
  • Strengthened collaboration with Kazakhstan can enhance resource security; however, extraction technology and connectivity pose challenges.

Conclusion

  • The proposed ‘India-Central Asia Rare Earths Forum’ aims to boost collaborative efforts and private sector investment.
  • Goals include joint mining ventures, shared geological data, and sustainable practices to create a regional market and reduce reliance on China.