From Import Dependent to Global Supplier: Kazakhstan's Push Into Critical Minerals Through Gallium Production

Kazakhstan is making a strategic bet on becoming a cornerstone of the global critical minerals supply chain. Eurasian Resources Group (ERG) is spearheading this transformation with two landmark projects that could reshape the country’s position in the international commodities market.

Gallium: Reshaping the Semiconductor Supply Chain

The most immediate development centers on gallium production—a metal whose geopolitical importance has grown sharply in recent years. During President Kassym-Jomart Tokayev’s recent visit to Japan, ERG finalized a long-term gallium supply deal with Mitsubishi Corporation RtM Japan, setting the stage for Kazakhstan’s entry into commercial gallium manufacturing.

The initiative marks a significant shift. Currently, global gallium supply is heavily concentrated, with China dominating production and recent export restrictions highlighting the vulnerability of countries dependent on a single source. Last year, worldwide gallium output reached approximately 760 metric tons, but the distribution remains uneven—China controls the lion’s share while Japan, South Korea, and Russia account for minimal volumes.

Kazakhstan’s gallium plant aims to change this calculus. Scheduled to begin operations in Q3 2026, the facility will produce 15 metric tons annually once fully operational, positioning Kazakhstan as the world’s second-largest gallium manufacturer. The project requires over US$20 million in capital investment and represents the country’s first commercial-scale gallium production.

The technical foundation is equally noteworthy. ERG is leveraging proprietary process technology developed internally to extract gallium from extremely low-grade ore sources—a capability that improves efficiency while simultaneously enhancing alumina quality and reducing material waste. The production approach draws on expertise from the Pavlodar aluminum plant, operated by Aluminium of Kazakhstan, creating a vertically integrated advantage for the enterprise.

Why Gallium Matters Now

Demand for gallium reflects its critical role in modern technology. The metal is indispensable for semiconductors, electronics manufacturing, advanced defense systems, and renewable energy technologies. As geopolitical tensions around supply chains intensify—exemplified by China’s recent export controls on gallium, antimony, and germanium—nations and manufacturers are actively seeking alternative sources and diversified suppliers.

The timing of Kazakhstan’s gallium initiative aligns with these broader market pressures, offering global semiconductor manufacturers and defense contractors an opportunity to reduce their dependence on Chinese supply.

The Broader Picture: Iron’s Next Chapter

Beyond gallium, ERG is executing an even more ambitious metallurgical transformation. The company recently announced a strategic partnership with Midrex Technologies and Primetals Technologies to construct a hot briquetted iron (HBI) facility in Rudny, located in Kazakhstan’s Kostanay region.

This HBI plant represents a different scale entirely. Designed to produce 2 million metric tons annually, the facility will require total investment exceeding US$1.2 billion and will be Kazakhstan’s first HBI operation. Within Central Asia’s metallurgical landscape, it will rank among the largest next-generation iron production centers.

Strategic Implications

Collectively, these two projects—gallium and HBI—underscore Kazakhstan’s ambitions to graduate from commodity exporter to processed materials manufacturer. The combination moves the country up the value chain while simultaneously addressing genuine supply chain vulnerabilities that exist globally. For semiconductor manufacturers concerned about gallium sourcing and steel producers navigating iron supply dynamics, Kazakhstan’s initiatives offer tangible alternatives to over-concentrated global markets.

The pace of development on both fronts suggests that these are not speculative ventures but firmly capitalized, timeline-driven projects with committed international partners already secured.