German Company to Mine and Process Lithium in East Kazakhstan
Two new industrial facilities dedicated to the mining and processing of lithium are set to be established in the Ulan district of East Kazakhstan Region by 2029. The announcement was made by Nurymbet Saktaganov, akim of East Kazakhstan Region, who noted that plans are underway for the construction of a mining and processing plant, as well as a pegmatite ore processing facility. $500 Million Investment from Germany The project will be implemented with the participation of HMS Bergbau AG, a German mining company that plans to invest $500 million into the development of a lithium deposit discovered in 2023. The initiative will include both the extraction of raw materials and the production of lithium oxide concentrate, a product in high demand across the global high-tech sector. Germany’s interest in Kazakhstan’s rare earth resources was discussed during a September 2023 meeting between President Kassym-Jomart Tokayev and Dennis Schwindt, Chairman of the Board of HMS Bergbau AG. Tokayev reaffirmed Kazakhstan’s openness to foreign investment and emphasized the country’s intention to become a key player in the supply of strategic raw materials. He highlighted lithium’s growing importance in modern industry, particularly for renewable energy and high-tech manufacturing. Operating in the USA, Singapore, South Africa, Poland, and several other markets, HMS Bergbau AG is considered a major independent force in the global solid minerals sector. Its new facility in East Kazakhstan will serve as a vital link in the international lithium supply chain, amid rising global demand driven by electric vehicles, portable electronics, and energy storage systems. $15.7 Billion Discovery by South Korean Researchers In a parallel development, researchers from the Korea Institute of Geosciences and Mineral Resources (KIGAM) announced in 2024 the discovery of a lithium deposit in East Kazakhstan valued at approximately $15.7 billion. Spanning 1.6 square kilometers, the site was previously mined for tantalum. The research, commissioned by the Kazakh government, was based on geological data indicating frequent co-location of lithium, cesium, and tantalum deposits. “KIGAM has been studying the area since last May at the request of the Kazakh government, given that tantalum usually comes with lithium and cesium,” The Korea Times reported. Lithium: A Cornerstone of the New Economy Globally recognized as one of the most critical and scarce elements, lithium is essential for producing lithium-ion batteries that power everything from smartphones and laptops to electric cars and grid-scale energy storage systems. Kazakhstan’s efforts to harness its lithium reserves in East Kazakhstan are expected to boost the country's role in the global energy transition and significantly enhance investment opportunities in the region.
