Kazakhstan Bets Big on Critical Minerals: How ERG's Latest Deals Could Reshape Global Supply

Kazakhstan is making a bold push into the critical minerals market, with two major infrastructure projects that signal the country’s intent to reduce the world’s dependence on Beijing-controlled supply chains. The catalyst? Eurasian Resources Group (ERG), which just announced plans to establish gallium and iron production facilities that could reshape regional manufacturing.

Gallium Production: From Zero to Number Two

The headline deal involves gallium—a metal most people have never heard of but which underpins everything from smartphones to military hardware. During a presidential visit to Japan, ERG inked an agreement with Mitsubishi Corporation to supply the Japanese conglomerate with gallium, effectively launching Kazakhstan’s first-ever commercial gallium operation.

The numbers tell the story: Over US$20 million will flow into the project, with commercial production targeted for late 2026. Once up and running, the facility will churn out 15 metric tons annually, instantly positioning Kazakhstan as the world’s second-largest gallium producer. Only China currently claims a larger share of the 760-metric-ton global market.

The technical approach is noteworthy. ERG will leverage process technology from the Pavlodar aluminum plant, combined with proprietary extraction methods developed in-house. This hybrid approach allows the company to recover gallium from low-grade ore sources while simultaneously boosting alumina output—a win-win for operational efficiency.

Why This Matters: Geopolitics in the Chip Era

The gallium play carries more weight than a simple commercial venture. China dominates gallium production and has weaponized export restrictions before. When Beijing suspended bans on gallium, antimony, and germanium after talks with the Trump administration, it underscored how fragile supply chains have become. Those materials still operate under export licensing regimes controlled by Chinese authorities.

Kazakhstan’s emergence as a major gallium hub would provide semiconductor manufacturers and defense contractors with a non-China alternative—a buffer against the kind of supply shocks that have already disrupted industries.

The Bigger Picture: A Hot Briquetted Iron Plant

The gallium announcement wasn’t the only blockbuster from ERG this week. The company revealed plans to construct a 2-million-metric-ton-per-year hot briquetted iron (HBI) plant in Rudny. With an investment exceeding US$1.2 billion and backing from Midrex and Primetals Technologies, the facility would be Kazakhstan’s first and rank among Central Asia’s most advanced metallurgical operations.

These two projects—gallium and HBI—represent a coordinated effort to transform Kazakhstan from a commodity exporter into a downstream processor of critical materials. For a region traditionally dependent on raw ore sales, it’s a significant economic shift with implications that extend well beyond the Caspian.