As the race for Central Asia’s critical raw materials accelerates, the EU is intensifying efforts to reduce its dependency on China—currently the dominant force in the region’s resource exports. Brussels is taking a new approach: instead of merely sourcing raw ore, it is promoting full value-chain development within Kazakhstan and Uzbekistan.
The EU’s strict environmental standards contrast with growing criticism of China’s ecological impact. In response, Beijing is highlighting its commitment to “green” cooperation. Over the past 18 months, Chinese investments in Central Asia’s energy and manufacturing sectors have surged to $4.1 billion and $11.8 billion, respectively.
EU MOVES TO STAKE CLAIM IN STRATEGIC MINERALS
In June 2025, the European Commission designated the Sarytogan graphite deposit as strategic under its Critical Raw Materials Act and began courting investors with EU-backed contract support. Located between Europe and China—which processes over 90% of global graphite—Sarytogan has become a focal point in the resource race.
Earlier, in August 2024, the European Bank for Reconstruction and Development (EBRD) made its first direct investment in Central Asian graphite, acquiring a 17.36% stake in Sarytogan Graphite for €3 million. Germany has also moved decisively: in mid-2023, HMS Bergbau AG secured a $200 million lithium deal, followed by the formation of a German industrial consortium in Kazakhstan in early 2024.
CHINA UPS ESG STANDARDS AT HOME AND ABROAD
Facing growing scrutiny, China has enacted a new Mineral Resources Law, effective July 1, 2025, that for the first time mandates environmental restoration plans prior to mining. While the law raises environmental, social, and governance (ESG) requirements, critics point to vague restoration rules and weak provisions for community involvement. Nonetheless, China is encouraging similar standards in its overseas projects—including in Central Asia.
To secure supply chains, China is focusing on vertical integration. One major initiative is East Hope Group’s $12 billion industrial project in Kazakhstan, which will combine mining, processing, electrolysis, and power generation, creating up to 10,000 jobs and a self-contained industrial ecosystem.
INTENSIFYING COMPETITION AND NEW STANDARDS
As competition heats up, Central Asian governments are under pressure to elevate both environmental and technological benchmarks. The EU is leveraging “soft power” through financing, green policy frameworks, and public diplomacy. Meanwhile, China is building vertically integrated industrial clusters and expanding its outreach through experts and state media.
