Two new industrial facilities for the extraction and processing of lithium will be built in the Ulan district of East Kazakhstan by 2029. The announcement was made by Nurymbet Saktaganov, the Akim (governor) of East Kazakhstan, who revealed plans for both a mining and processing plant, as well as a pegmatite ore processing facility.
$500 Million Investment from Germany
The project will be led by HMS Bergbau AG, a German mining company that will invest $500 million to develop a lithium deposit discovered in 2023. The project aims to both extract raw lithium materials and produce lithium oxide concentrate, which is highly sought after in the global high-tech market.
Germany’s growing interest in Kazakhstan’s rare earth resources was first discussed in a September 2023 meeting between President Kassym-Jomart Tokayev and Dennis Schwindt, Chairman of the Board of HMS Bergbau AG. During the meeting, Tokayev emphasized Kazakhstan’s openness to foreign investment and outlined the country’s goal of becoming a major supplier of strategic raw materials, particularly as lithium becomes increasingly important for industries such as renewable energy and advanced manufacturing.
HMS Bergbau AG, which operates in markets such as the USA, Singapore, South Africa, and Poland, is recognized as a leading player in the global solid minerals sector. The company’s new facility in East Kazakhstan is set to become a critical link in the global lithium supply chain, responding to rising demand driven by electric vehicles, portable electronics, and energy storage systems.
$15.7 Billion Lithium Discovery by South Korean Researchers
In a separate 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. The deposit, covering 1.6 square kilometers, was previously mined for tantalum. The research, commissioned by the Kazakh government, indicated that lithium, cesium, and tantalum deposits often occur together in the region.
“KIGAM has been studying the area since May 2023 at the request of the Kazakh government, as tantalum is commonly found alongside lithium and cesium,” reported The Korea Times.
Lithium: The Foundation of the New Economy
Lithium is widely recognized as one of the most critical and scarce elements in today’s global economy. It is essential for the production of lithium-ion batteries that power a wide range of technologies, from smartphones and laptops to electric vehicles and large-scale energy storage systems.
Kazakhstan’s efforts to tap into its lithium reserves in East Kazakhstan are expected to enhance the country’s role in the global energy transition, while opening up significant investment opportunities in the region.
