Kazakhstan Emerges as Critical Gallium Producer While Expanding Metallurgical Capacity

A major shift is underway in the global critical minerals landscape as Eurasian Resources Group accelerates two transformative industrial projects in Kazakhstan. The nation is now positioned to reshape supply chains for materials essential to semiconductors, electronics and renewable energy systems.

Gallium Production: Closing the China Gap

Kazakhstan is stepping into a strategic role in global gallium markets. Through a partnership unveiled during a presidential trade mission, ERG secured a long-term supply contract with Mitsubishi Corporation Japan, establishing the country’s first commercial gallium production facility. This milestone addresses a critical vulnerability in the world’s mineral supply chain.

The facility, requiring over US$20 million in capital investment, will commence operations in the third quarter of 2026. When fully ramped up, it will produce 15 metric tons of gallium annually—enough to position Kazakhstan as the world’s second largest producer of this essential metal. The gallium price and market dynamics remain closely watched by technology manufacturers globally.

The operation will leverage proprietary technology developed by ERG’s research division, combined with process innovations from Kazakhstan’s Pavlodar aluminum complex. This approach enables gallium extraction from low-grade ore sources while simultaneously enhancing alumina recovery and minimizing waste—a significant technical achievement.

The Global Gallium Challenge

Today’s world produced roughly 760 metric tons of gallium last year, according to US Geological Survey data. Yet the majority originates from a single source: China. Only marginal quantities emerge from Japan, South Korea and Russia, creating a pronounced dependency risk.

This concentration became acutely apparent when Beijing introduced export restrictions on several critical minerals. Following high-level diplomatic negotiations, China announced relief on gallium shipments to the United States, though broader licensing frameworks remain in place. For manufacturers worldwide, the message is clear—supply diversification is no longer optional.

The Broader Play: Hot Briquetted Iron Infrastructure

Beyond gallium, Kazakhstan is making an even larger infrastructure bet. ERG announced a separate strategic partnership with Midrex Technologies and Primetals Technologies to construct Central Asia’s next-generation metallurgical facility. Located in Rudny within Kostanay region, this hot briquetted iron (HBI) plant will process 2 million metric tons annually at a cost exceeding US$1.2 billion.

This represents Kazakhstan’s first HBI production capacity and stands among the region’s most ambitious metallurgical projects. The dual-track investment—gallium for advanced electronics, HBI for traditional and modern manufacturing—signals Kazakhstan’s intent to capture multiple links in the clean energy and technology supply chains.

Remaking Supply Chain Architecture

These developments reflect a broader geopolitical recalibration. As governments and corporations recognize the risks of over-reliance on concentrated mineral production, Kazakhstan’s geographical position and resource base offer a compelling alternative. The gallium facility alone demonstrates how emerging producers can compete for premium critical mineral markets previously dominated by established players.

For investors tracking supply chain resilience and mineral diversification, Kazakhstan’s emerging role warrants close attention.