In a step to change the global critical minerals map, Eurasian Resources Group (ERG) will start producing gallium in Kazakhstan next year with an investment of USD 20 million. With the commitment to make Kazakhstan the second-largest supplier of the critical metal in the world and to respond to the West's demand for a diversified supply chain, ERG will start the project at its current alumina production facilities.
Production will begin in 2026. ERG will be mining gallium as a byproduct of its bauxite ore, which it already produces at its "Aluminium of Kazakhstan" facility, among the largest of its type in the world. This synergy enables ERG to access a key source of supply without having to open up new mines, and in so doing, provides it with a major cost advantage. The firm aims to increase production to 15 metric tonnes per year, with a specific emphasis on selling to OECD markets.
Taking advantage of West-China trade conflict
The timing of this development is key. Gallium is classified as a "critical mineral" by the US and EU due to its irreplaceable position in high-tech applications. It is a foundation element in high-performance semiconductor fabrication in everything from consumer electronics and smartphones to advanced radar systems and missile guidance technology.
China dominated the gallium market for years and accounted for the overwhelming majority of the 760 tonnes produced worldwide last year. Yet, Beijing's recent export bans on gallium, among other strategic metals, caused a shockwave across high-tech industries by emphasising the severe exposure of countries to one supplier. ERG's proposal presents a direct alternative. In providing a new source of production beyond China, the project supports the geopolitical and economic security objectives of Western countries.
This project also represents a significant milestone in the national strategy of Kazakhstan to become an international leader in critical minerals, which its government has characterised as the "new oil". The nation is actively building on its enormous mineral resources to secure foreign investment and become a partner for the West.
ERG, in which the Kazakh state owns 40%, is a prime vehicle for this aspiration. The new gallium plant not only adds diversity to the company's portfolio but also strengthens Kazakhstan's position as a central player in the high-stakes game of strategic resource acquisition.
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