US Experts Call for Diversification in Rare Earth Supply Chains from Central Asia
Atlantic Council’s Eurasia Center and the International Tax and Investment Center (ITIC) published a new report that focuses on leveraging rare earth elements (REEs) in Central Asia. The aim is to diversify global supply chains and regulate China’s rare earth dominance. The report’s arrival is significant, considering that the world is experiencing a revolution in energy and a heightened awareness of countries’ energy vulnerability due to climate change and great power competition.
As part of a panel discussion on Jan. 23, the Washington-based think tank reviewed Central Asia’s potential and highlighted Kazakhstan’s position in mining and extractive industries. The panel was moderated by Andrew D’Anieri, a resident fellow at the Atlantic Council.
Ariel Cohen, a senior fellow at the Atlantic Council and the managing director of the ITIC’s Energy, Growth, and Security (EGS) Program, expressed that rare earths could be pivotal in driving economic growth in Central Asia. Cohen emphasized the importance of the energy sector where rare earths play a critical role in the transition toward renewables, high tech, artificial intelligence, quantum computing, and space travel.
The report also shed light on Kazakhstan’s strong mining history and its massive reserves in rare earth elements, chromium, and uranium. The National Geological Service in Kazakhstan revealed that the country is currently carrying out prospecting works on 12 objects located in various cities.
Central Asia’s significance in the global landscape was underscored by the experts, who also noted the region’s increasing involvement in transportation infrastructure. The United States, for example, proposed a C5+1 Critical Minerals Dialogue to harness the region’s abundant mineral resources and announced the establishment of a new business platform under the C5+1 framework.
Uzbekistan and Kazakhstan were identified as countries with forward-looking progressive policies towards rare earths in Central Asia, with both countries taking significant steps in rare earths mining and processing.
The report also pointed out the geopolitical implications of rare earths, with China currently dominating the international refining capacity of REEs. This dominance has prompted countries in Central Asia to seek a closer relationship with the United States, primarily to expand their opportunities in rare earth production.
The extensive report serves as a call for Central Asian countries to capitalize on the potential of rare earth elements to boost their economies and establish themselves as key players in the global rare earth marketplace.
