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Tapping into Kazakhstan’s Rare Earths Potential

India is navigating a critical juncture in its energy transition, focusing on renewable sources while grappling with the increasing demand for rare earth elements (REEs). Despite being the fifth-largest holder of REEs, India imports about 60% of its rare earths from China due to inadequate domestic extraction technologies.

Kazakhstan: A Strategic Alternative for India

  • Kazakhstan, rich in Rare Earth Elements (REEs), is emerging as a promising partner for India to mitigate dependency on China.
  • Key aspects of Kazakhstan’s REE industry:
    • Hosts 15 of the 17 known rare earth elements.
    • Advanced extraction technologies and partnerships with Japan, Germany, the U.S., South Korea, and the European Union.
    • Growth in dysprosium production (essential for clean energy) is expected between 2024 and 2029.
    • Known as one of the world’s largest producers of tantalum and niobium, critical for nuclear reactors and clean energy.
    • Holds a significant role in manufacturing beryllium, scandium, tungsten, and battery materials.
    • Extracts strategic minerals like bismuth, selenium, and tellurium and uses imported technologies to produce gallium and indium, crucial for renewable energy.
  • Kazakhstan’s President Kassym-Jomart Tokayev has called rare earths the “new oil” of the country’s economy.

India-Kazakhstan Collaboration: Potential and Challenges

  • India’s renewable energy pledge at COP29 includes achieving 500 GW of capacity by 2030, requiring rare earths like dysprosium.
  • A planned 400% increase in domestic REE mining output over the next decade is insufficient to meet current and future needs.

Challenges

  • Lack of necessary extraction technologies in both India and Kazakhstan.
  • Connectivity issues between the two nations.

Opportunities

The ‘India-Central Asia Rare Earths Forum,’ proposed during the second India-Central Asia Summit, aims to enhance partnerships through:

  • Bilateral training programs.
  • Joint mining ventures and shared geological data.
  • Private sector investment and sustainable extraction practices.
  • Development of a regional REE market to reduce reliance on China.
  • India’s engagement with Kazakhstan through the ‘Connect Central Asia’ policy and the International North-South Transport (INSTC) Corridor strengthens the foundation for collaboration.

Strategic Implications

  • Diversification through Kazakhstan can help India reduce its reliance on China and strengthen resource security.
  • By leveraging Kazakhstan’s advanced technologies and mining potential, India can create a more sustainable and robust supply chain for rare earths.
  • A strategic partnership can foster economic growth for both nations while supporting global clean energy goals.

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Sakshi Gupta is a content writer to empower students aiming for UPSC, PSC, and other competitive exams. Her objective is to provide clear, concise, and informative content that caters to your exam preparation needs. She has over five years of work experience in Ed-tech sector. She strive to make her content not only informative but also engaging, keeping you motivated throughout your journey!