European Union commits Eur2.5 billion to critical minerals projects in Central Asia

The leaders of the EU and Central Asia endorsed a Joint Declaration of Intent on Critical Raw Materials during the first EU-Central Asia Summit held on April 4 in Samarkand, in Uzbekistan with the participation of presidents of the European Commission and the European Council Ursula von der Leyen and António Costa and the five presidents of the Central Asian states.

Central Asia is endowed with immense resources of critical raw materials holding 40% of the global reserves of manganese, as well as lithium, graphite, and more, according to von der Leyen.

"These raw materials are the lifeblood of the future global economy. Yet they are also a honeypot for global players. Some are only interested in exploiting and extracting. Europe's offer is different. We also want to be your partners in developing your local industries. The added value has to be local," she said at the summit, adding that European companies have already invested Eur1.6 billion in Uzbekistan's Almalyk copper mine, where they did not just contribute to extracting but also to processing the ore on site.

The EU have earlier signed Memoranda of Understanding on critical minerals with Kazakhstan and Uzbekistan, and now by endorsing a Joint Declaration of Intent on Critical Raw Materials, it should be able to also attract private investment into the region's mining and processing industry.

The Declaration on critical raw materials is a Eur2.5 billion part of the Eur12 billion Global Gateway Investment Package the EU has just committed to Central Asia to concentrate on the four priority areas, with the other three being the Trans-Caspian Transport Corridor, clean energy, and digital connectivity.

Last year, the EU already pledged Eur10 billion to the transport Corridor, which will cut the overland journey between Europe and Central Asia by half to 15 days, bringing the two regions "closer together like never before" unlocking potential for businesses, including trade in critical raw materials, as well as boosting connectivity within Central Asia itself.

The Global Gateway Investment package is also meant to help Central Asia become a clean energy hub that generates enough for its economy and for export, and even turn part of its energy into clean hydrogen. The sources will be wind in Kazakhstan, solar in Uzbekistan and Turkmenistan, hydro in Tajikistan and Kyrgyzstan, and geothermal across the region, according to von der Leyen.

She highlighted the Rogun Dam under construction in Tajikistan, which, alongside the proposed Kambarata Dam in Kyrgyzstan, could transform Central Asia into a clean energy powerhouse, powering electric trains, industry and mining, while enabling energy exports to neighbors.