Kazakhstan Steps Up as Critical Minerals Powerhouse: New Gallium Metal Production Set to Reshape Global Supply

The geopolitical landscape of critical metals is shifting as Kazakhstan embarks on transforming its industrial capabilities, with major commitments to gallium extraction and advanced metallurgy. Eurasian Resources Group (ERG) has cemented the nation’s position in the emerging supply chain for semiconductor materials through a partnership agreement with Mitsubishi Corporation Japan, finalized during an official state visit. This landmark deal represents Kazakhstan’s entry into commercial-scale gallium metal production, an area previously dominated by a handful of global suppliers.

The gallium metal facility marks a watershed moment for Central Asian mineral processing. Scheduled for operational startup in Q3 2026, the installation will achieve annual production targets of 15 metric tons, requiring over US$20 million in capital deployment. Upon completion, Kazakhstan will rank as the world’s second-largest source of this essential material, fundamentally altering the competitive dynamics that have long characterized the sector.

What makes this development particularly significant is the technical foundation supporting it. Drawing on expertise from Aluminium of Kazakhstan’s Pavlodar operations, ERG has developed proprietary extraction methods capable of recovering gallium metal from low-grade ore bodies while simultaneously boosting alumina yields and minimizing waste. This dual-benefit approach enhances project economics while addressing longstanding inefficiencies in the processing chain.

The global context illuminates why this matters. Last year’s total gallium metal output reached approximately 760 metric tons globally, yet supply remains dangerously concentrated. China accounts for the overwhelming majority of this production, with Japan, South Korea and Russia contributing marginal quantities. This dependency has triggered alarm bells across manufacturing and defense sectors, particularly following Beijing’s imposition of export controls on gallium metal and related critical materials. Recent diplomatic maneuvers—including China’s temporary suspension of export bans on gallium and related elements following high-level talks—underscore the strategic importance of diversifying sources beyond Asia.

ERG’s ambitions extend beyond gallium metal alone. The company simultaneously progressed its hot briquetted iron (HBI) facility initiative in Rudny, Kostanay region, a US$1.2 billion-plus undertaking in collaboration with Midrex and Primetals Technologies. This project will establish Kazakhstan’s maiden HBI plant, capable of producing 2 million metric tons annually and positioning the facility among Central Asia’s largest next-generation metallurgy installations.

Together, these initiatives suggest Kazakhstan is transitioning from a raw materials exporter into a refined critical materials processor, potentially reshaping how industries dependent on gallium metal and advanced steel products structure their supply chains.