critical raw materials - The Times Of Central Asia

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U.S. and Uzbekistan Sign Landmark Economic and Strategic Agreements

The United States and Uzbekistan are deepening their economic and technological partnership. Following President Shavkat Mirziyoyev’s meeting with U.S. President Donald Trump in Washington, the U.S. State Department announced a sweeping package of agreements, described as among the most significant in the history of bilateral relations in both investment and strategic scope. High-Level Business Engagements During his Washington visit, President Mirziyoyev held talks with representatives from major American corporations, investment funds, and financial institutions. The meeting was attended by U.S. Secretary of Commerce Howard Lutnick, Special Assistant to the President Ricky Gill, Special Assistant to the President Ricky Gill, Deputy Secretary of Agriculture Stephen Vaden, and executives from companies such as Traxys, FLSmidth, McKinsey, Meta, Google, Amazon, Boeing, Air Products, Axiom Space, Cove Capital, Freeport-McMoRan, Orion CMC, Cargill Cotton, John Deere, Honeywell, Valmont Industries, and Flowserve Corporation. Opening the event, Mirziyoyev highlighted that trade between Uzbekistan and the U.S. has quadrupled over the past eight years, and more than 300 American companies are now operating in the country. He added that this is just the beginning of a new era in economic cooperation. Key strategic goals were outlined: by 2030, Uzbekistan aims to develop a new-generation energy system with 18-20 GW of renewable capacity, more than half of it sourced from solar and wind. In this context, the two countries plan to jointly develop and process critical minerals such as uranium, copper, tungsten, molybdenum, and graphite, establishing resilient supply chains and leveraging U.S. processing technologies. Infrastructure is another major focus. Uzbekistan intends to invest over $12 billion by 2030 to modernize roads, railways, terminals, and airports. Digital cooperation is also expanding. Projects with Google, Meta, and NVIDIA include the launch of Apple Pay and Google Pay, the creation of a Digital Academy, and the development of startup hubs. These initiatives are expected to be supported by the U.S. International Development Finance Corporation (DFC) and the U.S. Exim Bank. Mirziyoyev reaffirmed his personal commitment to supporting American investment, stressing that Uzbekistan remains a stable and favorable destination for foreign businesses. Securing Access to Strategic Raw Materials Washington’s primary interest lies in critical minerals. The U.S. will gain priority access to joint mining projects and exclusive access to geological data on rare earth and other strategically significant elements. This move is part of a broader U.S. effort to diversify global sources of inputs vital to defense, green energy, and other high-tech sectors. The two countries are also preparing a $400 million investment package to develop sustainable supply chains for critical and rare earth minerals. For Uzbekistan, this represents a key step toward integration into global value chains and reduced reliance on limited partners. Energy Cooperation: A Role for Small Modular Reactors Uzbekistan plans to acquire American small modular reactors (SMRs), a technology increasingly favored by emerging economies for its scalability and relatively low upfront costs. Interest in SMRs has grown following the 2025 approval of the upgraded NuScale Power Module (77 MW), and Uzbekistan may become one of the first countries in...

critical raw materials

U.S. Backs Private Bid for Kazakhstan’s Tungsten

The United States is facilitating a private American bid by Cove Kaz Capital Group LLC for Kazakhstan’s Upper Kairakty and North Katpar tungsten deposits, in competition with state-backed Chinese bidders. Tungsten is not a rare earth element, but it is a critical raw material. In particular, it underpins armor-piercing ammunition, penetrators, and high-temperature tooling used across aerospace and industrial manufacturing. Reporting indicates direct engagement by senior U.S. officials and active coordination with Kazakhstan’s sovereign-wealth ecosystem. The metal’s significance elevates the commercial negotiation into a strategic policy. The policy driver is diversification away from China’s dominance along the mine-to-powder supply chains. China accounts for well over four-fifths of global tungsten production and processing, and tightened export controls in 2025 have upset pricing and availability. The U.S. has established a procurement deadline of 2027 to avoid sourcing from China or Russia for covered defense uses. All this adds urgency to securing non-Chinese volumes. Kazakhstan’s revived tungsten sector includes a newly opened processing plant, with destinations not yet announced for the concentrate to be produced. The country thus offers a practical non-Chinese source of tungsten. Strategic Stakes and Principal Actors The American role would be one of facilitation and financing, rather than ownership. The administration has supported talks linking Cove Kaz to Kazakhstan’s Samruk-Kazyna and relevant mining entities. Commerce Secretary Howard Lutnick is mentioned as a key interlocutor. Potential financial tools include the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank. Insurance (EXIM), guarantees, or direct loans from these institutions would offset pricing and risk advantages historically offered by Chinese bidders. The U.S. government’s approach is to enable a private operator to compete without placing federal equity as an asset. Kazakhstan’s Samruk-Kazyna and its mining arm Tau-Ken Samruk coordinate with the national exploration company Qazgeology. Kazakhstan has pursued a wider critical-minerals investment agenda, signaling its openness to joint ventures and privatization pathways under a special legal regime that provides a familiar legal and compliance framework for Western partners. That structure streamlines licensing and dispute resolution and has already been used for joint ventures in other critical minerals projects. China remains the current market leader, dominating tungsten mining, ammonium paratungstate (APT) conversion, and downstream powders and carbides. Beijing’s 2025 export controls cover tungsten, tightening an already narrow global market and raising the policy value of non-Chinese options. Reports of Chinese interest in Vietnam’s Nui Phao tungsten complex underscore that non-Chinese sources face active competition, framing Kazakhstan’s appeal to Western buyers. The Assets and Kazakhstan’s Capacity Rebuild Kazakhstan suspended tungsten production after the 1990s but has moved over the past several years to re-establish a mine-to-processing base, with corporate and ministerial communications emphasizing the strategic nature of these deposits for long-term development. Upper Kairakty (also rendered as Verkhneye or Upper Kayrakty) and North Katpar sit in the Karaganda Region and feature repeatedly in Samruk-linked materials as the top tungsten prospects. Upper Kairakty is by itself the world’s largest tungsten deposit, and represents over two-thirds of the total tungsten reserves across the ex-Soviet territories. One...

Regional Influence

A New Great Game: Multipolar Competition in Central Asia

At a time when the European Union, China, and Turkey are seeking to strengthen their presence in Central Asia, the United States administration is consumed with bilaterally implementing a seismic shift in its trade policy with the entire world. Although this region of post-Soviet space is widely seen as a new front of rivalry between Washington and Beijing, in many aspects, American influence in Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan lags far behind that of other actors. Culture (soft power) has always played an important role in the foreign policy of every great power. The Soviet Union was no exception. As a result, even today, Russian, rather than English, is still the lingua franca in Central Asia, although Moscow, following its invasion of Ukraine, has had a hard time preserving remnants of its former dominance in the region. Russian cinema, however, maintains a notable presence in most, if not all, Central Asian states. While Hollywood movies have a strong global presence, Russian films in Central Asia often act as a link between Western content and the region's cultural traditions. Millions of Central Asian migrants working in Russia also serve as a bridge between their nations and the Russian Federation, facilitating cultural exchange, economic ties, and the spread of the Russian language. However, Russia’s fiasco in Ukraine has created space for the EU to assert its influence in a region that has traditionally been in Moscow’s geopolitical orbit. Nevertheless, although Kazakhstan, Kyrgyzstan, are Tajikistan are members of the Russian-led Collective Security Treaty Organization, they have remained neutral in the Ukraine conflict. For Central Asian nations, the EU serves as a counterweight they can use to balance their relations with Moscow. The EU, however, faces strong economic competition from China. With a trade volume of $94.8 billion with Central Asian states, Beijing is positioning itself as the major economic power operating in the five regional nations. Although the European Union’s influence in Central Asia is expected to continue to grow in the coming years, if investment trends from recent years persist, the balance in the region will likely tilt towards China, which will increase its presence and influence at the expense of Russia. But where does the United States fit into this dynamic? Even though the U.S. is the largest economy in the world, with which almost everyone wants to engage, American bilateral trade with the region has never been particularly strong, with the exception of Kazakhstan. Interestingly enough, it is Astana that is expected to suffer the most among Central Asian actors due to U.S. President Donald Trump’s decision to impose tariffs – 27% on Kazakhstan compared to 10% on all other nations in the region. Exceptions may be made for Kazakhstan’s critical minerals, however, which are now the third largest in the world based on a recent discovery, with reports suggesting that some goods, including “certain minerals that are not available in the United States,” as well as energy, will not be subject to the tariffs. According to Kazakhstan’s Ministry...

U.S. Tariffs

Trump’s Tariff Blitz Targets Global Imports, Kazakhstan Faces Harshest Impact in Central Asia

U.S. President Donald Trump has announced sweeping new tariffs on all goods imported into the United States, citing the need to protect American industry and jobs. Speaking at a White House press conference, Trump outlined a base tariff rate of 10% that will apply to 185 countries. However, several nations and blocs face significantly higher rates: China will see a 34% tariff, the European Union 20%, Switzerland 31%, and Israel 17%. The steepest tariffs were imposed on Vietnam (46%), Cambodia (49%), and Laos (48%). Notably absent from the list are Russia, Belarus, Mexico, Iran, Canada, and Belarus. Ukraine, however, will face the base 10% rate. Kazakhstan Hit with 27% Tariff The new U.S. duties also target Central Asian nations. According to a comparative chart published by the White House, Uzbekistan, Turkmenistan, Tajikistan, and Kyrgyzstan will face 10% tariffs on their exports to the U.S. Meanwhile, Kazakhstani goods will be subject to a much higher rate of 27%. The White House document notes that Kazakhstani imports currently face a 54% tariff in Kazakhstan, figures that surprised local analysts, who have questioned the methodology behind the calculations. The rationale for the elevated rate on Kazakhstan remains unclear. However, the country's Ministry of Trade and Integration has initiated consultations with his U.S. counterparts to explore options for exempting certain goods. According to a preliminary analysis, many of Kazakhstan’s key exports fall under exceptions outlined in U.S. regulations. “In 2024, trade turnover between Kazakhstan and the United States amounted to $4.2 billion,” the ministry stated. “Kazakhstan's primary exports to the U.S. - crude oil, uranium, silver, and ferroalloys - constitute 92% of total exports and are included in the exemption list under the U.S. President’s decree on reciprocal tariffs.” Turning Tariffs Into Opportunities Despite the steep new tariffs, some experts believe the impact on Kazakhstan will be limited. Financial analyst Rasul Rysmambetov argues that Kazakhstan’s marginal role in global trade dynamics shields it from major economic fallout. “The real battle is between the U.S. and the world’s largest economies, China and the EU,” Rysmambetov wrote on his Telegram channel. “Our trade with the U.S. accounts for less than 1% of Kazakhstan’s total foreign trade. Even with a 27% tariff, the effect will be negligible.” Rysmambetov noted that Kazakhstan exported over $2 billion worth of goods to the U.S. in 2024, while imports totaled $1 billion, maintaining a trade surplus for the tenth consecutive year. “We’re on the tariff list, but it’s mostly symbolic,” he added, emphasizing that Kazakhstan’s exports largely consist of strategic materials. Rysmambetov also sees potential upsides: countries facing new duties may seek alternative markets, possibly offering Kazakhstan better terms on imports such as equipment, metals, vehicles, and construction materials. “Global trade tensions can open windows of opportunity, for strategic borrowing, better equipment deals, and expanded exports. But quick action is key,” he concluded. International Backlash The U.S. move drew swift condemnation from European Commission President Ursula von der Leyen, who called the policy a “severe blow to the global economy.” “Uncertainty will...

EU-Central Asia Relations

EU-Central Asia Ministerial Meeting Highlights Enhanced Cooperation and Strategic Priorities

The 20th EU-Central Asia Ministerial Meeting took place on March 27 in Ashgabat, Turkmenistan, reaffirming the parties’ strong political will to deepen engagement and strengthen cooperation in strategically significant areas. The meeting brought together the EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, along with the foreign ministers of Tajikistan, Turkmenistan, and Uzbekistan, and the deputy foreign ministers of Kazakhstan and Kyrgyzstan. A key item on the agenda was preparation for the inaugural EU-Central Asia Summit, scheduled for April 4, 2025, in Samarkand, Uzbekistan. Advancing Strategic Cooperation Kallas and Central Asian ministers discussed a broad spectrum of mutual priorities under the EU’s Global Gateway Flagship Initiatives, including trade, transport, energy, water resource management, climate change, digitalization, and critical raw materials. Both sides also highlighted advancing cooperation in education, vocational training, research, and skills development to foster deeper people-to-people ties. In a joint communiqué adopted at the meeting, the EU and Central Asian states reaffirmed their shared commitment to further strengthening their comprehensive partnership, grounded in mutual interests and values. The discussions were guided by the “Joint Roadmap for Deepening Ties between the EU and Central Asia,” previously adopted in Luxembourg in October 2023. Focus on Connectivity and the Trans-Caspian Corridor Connectivity emerged as a central theme, with the participants stressing the need to expand sustainable connections between Central Asia and Europe. The EU’s Global Gateway Strategy was highlighted as a key vehicle for supporting regional infrastructure in trade, transport, water, and energy. The participants recalled the success of the Global Gateway Investors Forum on EU-Central Asia Transport Connectivity, held in Brussels in January 2024. They welcomed commitments by European and international financial institutions to invest €10 billion in the Trans-Caspian Transport Corridor (TCTC), aimed at significantly enhancing East-West transport links. Critical Raw Materials and Local Value Chains Another focal point was the growing strategic importance of critical raw materials (CRMs). Ministers reviewed progress following the signing of a Strategic Partnership Memorandum of Understanding between the EU and both Kazakhstan and Uzbekistan in the CRM sector. The meeting acknowledged EU support for strengthening local value chains in Central Asia. Discussions stressed alignment with international labor and environmental standards and the development of sustainable investment projects across the region. Sanctions Compliance The EU also briefed participants on its restrictive measures in the current geopolitical environment, underlining the need to prevent sanctions circumvention. Central Asian countries expressed readiness to continue cooperating with the EU to prevent re-exports of sensitive items, particularly those classified as “high priority.” Strategic Outlook The meeting reaffirmed the EU’s 2019 Strategy on Central Asia, which recognizes the region’s increasing strategic relevance to Europe. The Ashgabat gathering further solidified this recognition, highlighting Central Asia’s growing role in regional connectivity, resource security, and global diplomacy.

Economic Cooperation

EU-Uzbekistan Cooperation Focuses on Digital Connectivity and Critical Raw Materials

On March 18, European Commissioner for International Partnerships Jozef Síkela visited Uzbekistan on the final leg of his Central Asia tour. In Tashkent, he met with President Shavkat Mirziyoyev to strengthen the growing partnership between Uzbekistan and the European Union. According to the EU Delegation to Uzbekistan, discussions centered on expanding digital connectivity, promoting sustainability, and fostering job creation through critical raw materials. Another key focus was the development of the Trans-Caspian Transport Corridor to enhance trade. The visit also highlighted how the EU’s Global Gateway strategy supports infrastructure and clean energy initiatives. Both sides acknowledged the increasing momentum in EU-Uzbekistan relations, particularly in political, trade, economic, investment, cultural, and humanitarian cooperation. They also discussed preparations for the first-ever Central Asia-EU summit, set to take place in early April in Samarkand. New EU-Funded Projects in Uzbekistan As part of the Team Europe Initiative on Digital Connectivity in Central Asia, Síkela witnessed the signing of agreements for two key EU-funded projects aimed at improving digital infrastructure across the region: The Connectivity for Central Asia (C4CA) Project - This initiative seeks to enhance digital infrastructure and regional integration, supporting economic growth and better access to online services. By fostering stronger digital ties among Central Asian countries, the project aims to bridge the digital divide and promote economic cooperation. The Satellite Connectivity for Underserved Populations Project - This project is designed to provide high-speed internet access to remote and underserved communities in Central Asia. By improving digital access in rural areas, the initiative supports education, healthcare, and economic development, aligning with the EU’s broader goal of promoting inclusive digital connectivity. Síkela underscored the importance of EU-Uzbekistan cooperation in improving internet access across the region. “European technology combined with Uzbek expertise can ensure more people have access to fast and secure internet, support businesses to grow, create new jobs, and improve living conditions in local communities. By investing in digital connectivity, we're bridging gaps, creating opportunities, and ensuring that Central Asia is ready to benefit from the digital economy,” he said. Cooperation on Critical Raw Materials During his visit, Síkela also toured the Almalyk Mining and Metallurgical Complex, one of Uzbekistan’s key industrial facilities. The visit aimed to explore opportunities for sustainable resource development and responsible investment in critical raw materials, further strengthening economic cooperation between the EU and Uzbekistan.