Kazakhstan's Emergence as Critical Minerals Hub: Gallium Production Milestone and Strategic Iron Projects Reshape Industry Landscape

The convergence of multiple large-scale industrial projects is positioning Kazakhstan as a transformative force in the global critical minerals supply chain. Strategic announcements this week underscore how the nation is leveraging its resource assets to reduce dependence on concentrated producers and diversify the world’s supply network for materials essential to modern technology.

Gallium Production Reaches Commercial Scale

During a high-level diplomatic engagement with Japan, Eurasian Resources Group (ERG) formalized a partnership with Mitsubishi Corporation to establish Kazakhstan’s first commercial-scale gallium production operation. The facility will draw on the technical expertise embedded within the Pavlodar aluminum complex and deploy proprietary extraction methodologies developed by ERG’s research division, allowing the recovery of gallium from low-grade ore deposits while simultaneously enhancing alumina yields.

The investment threshold exceeds US$20 million, with commercial output anticipated to commence in Q3 2026. Initial production capacity is targeted at 15 metric tons annually. Once this facility reaches full operation, Kazakhstan will occupy the position of world’s second-largest gallium producer—a semiconductor and advanced technology essential currently dominated by China’s supply monopoly.

Today’s global gallium supply chain generates approximately 760 metric tons annually, with China commanding the preponderance of output. Japan, South Korea, and Russia maintain marginal production levels. The geopolitical risk embedded in this concentration intensified after Beijing enacted export restrictions on gallium alongside antimony and germanium. Though China signaled a temporary suspension of these controls following recent high-level talks, broader licensing requirements persist for critical minerals exports.

This supply concentration has proven a focal point for defense and technology manufacturers worldwide, crystallizing in particular since Beijing’s enforcement of export controls over materials deemed strategically vital to advanced semiconductor and defense applications.

Iron Production Amplifies Kazakhstan’s Industrial Footprint

Complementing the gallium initiative, ERG announced a second transformative project in partnership with Midrex Technologies and Primetals Technologies. A hot briquetted iron (HBI) facility will be constructed in Rudny within Kazakhstan’s Kostanay region, engineered to process 2 million metric tons annually. The project commands total capital deployment exceeding US$1.2 billion and will represent Kazakhstan’s inaugural HBI operation—positioning it among Central Asia’s most advanced metallurgical installations.

The dual trajectory of these investments illustrates Kazakhstan’s strategic pivot toward high-value mineral processing and downstream industrial production, effectively transforming the nation from a raw materials exporter into a value-added critical materials producer in the global supply ecosystem.