Kazakhstan readies for lithium bonanza
Get ready for Kazakhstan to make some serious noise in the global lithium market! This Central Asian nation is steadily positioning itself as a promising supplier of high-quality lithium, as demand for the electric vehicle industry's must-have mineral surges.
Though there haven't been any concrete investment commitments yet, the prospects look favorable. At a Seoul conference on March 5, researchers from the Korea Institute of Geoscience and Mineral Resources (KIGAM) revealed the discovery of significant lithium reserves in eastern Kazakhstan. The Bakennoye deposit, previously mined for tantalum, could be worth up to $15.7 billion according to KIGAM experts, quoted by The Korea Times. Next year, KIGAM plans to jointly apply with a South Korean company for permission to drill deeper at this site.
With this discovery, Kazakhstan strengthens its position as a burgeoning lithium source. European Commission official Maros Sefcovic acknowledged Kazakhstan's potential at the EU-Kazakhstan Business Forum in November, describing the country as holding 20 critical raw materials, including lithium, tungsten, and rare earth elements. Sefcovic pointed out that Europe currently caters for only 1% of global raw material production like lithium, essential for the twin agendas of transitioning to green and digital technology. With demand for lithium expected to be 12 times higher by 2030 and 21 times by 2050, Kazakhstan could make a huge impact.
To capitalize on this potential, the European Commission and the European Bank for Reconstruction and Development allocated 400,000 euros for lithium exploration in the Aral Sea and tungsten processing projects in November 2021. Kazakhstan's state-run mining company, Tau-Ken Samruk, also signed a grant agreement for these projects.
In October 2022, President Kassym-Jomart Tokayev estimated that Kazakhstan might hold as much as 100,000 tons of lithium. The Kazakh National Geological Service provided a more accurate estimate of around 75,600 tons.
This newfound transparency in Kazakhstan represents a significant shift. Until a few years ago, Kazakhstan's government had kept much of this valuable data classified. Former President Nursultan Nazarbayev and other top officials reportedly encouraged foreign investors to consider lithium mining without revealing just how much of the mineral was available in the country. However, in 2021, Kazakhstan's government decided to declassify state-produced data regarding lithium, cesium, gallium, and tantalum.
In May 2023, at a Kazakh-Chinese investment roundtable in Xian, China, President Tokayev suggested investing in lithium, recognizing China's dominance in the electric vehicle market. If China were to accept this offer, it would further consolidate its hold on global processed lithium supplies, as the U.S. Department of Energy found that Chinarefined 60% of the world's lithium in 2021.
European parties are also starting to show interest. In September, President Tokayev met with the chairman of Berlin-based HMS Bergbau, Dennis Schwindt, who introduced a $500 million project to build a lithium extraction and processing plant in the East Kazakhstan region. In February, a representative for a consortium of German construction and building materials companies visited Kazakh Industry and Construction Minister Kanat Sharlapayev to discuss opportunities for lithium exploration.
Kazakhstan is not messing around when it comes to lithium. Besides hosting a planned electronic auction for 50 solid mineral deposits, including 21 valuable critical mineral sites in June 2025, Kazakhstan is also collaborating with foreign companies like ERAMET on lithium mining projects in the Aral Sea region [4][5].
It's a new day for Kazakhstan, and its ambitions stretch far and wide. Buckle up, because this Central Asian powerhouse is about to make some big moves on the global lithium market!
Companies Involved
- ERAMET: Exploring lithium mining opportunities in the Aral Sea region [4]
- Kazakhstan's state mining company, Tau-Ken Samruk: Might acquire a stake in a lithium project initiated by KIGAM in eastern Kazakhstan [5]
- Korea Institute of Geoscience and Mineral Resources (KIGAM): Conducting geological studies and leading the lithium exploration project in eastern Kazakhstan [5]
- HMS Bergbau: A German company proposing to build a lithium extraction and processing plant in the East Kazakhstan region [4]
- ITEL Deutsches Lithiuminstitut: A German research organization interested in lithium exploration in Kazakhstan [4]
In the realm of science and technology, KIGAM, a Korean research institute, is leading a lithium exploration project in eastern Kazakhstan. Moreover, German company HMS Bergbau has proposed constructing a lithium extraction and processing plant in the East Kazakhstan region, showcasing the nation's potential in the sports of business and technology.
