Central Asia is rapidly emerging as a crucial player in the global competition for rare-earth elements which are vital for energy systems, AI development and defense capabilities. Once viewed as a remote region it now holds significant reserves of rare-earths elements and is becoming increasingly important in its global supply chain.
KABUL POST – China has long dominated this market directing nearly 90% of the processing and strategizing to controlling the entire supply chain, from extraction to production. This has made China a major geopolitical force with the ability to influence and regulate global markets.
In contrast, the US has been slow to respond but is now shifting its focus. Initiatives like Project Vault and the FORGE framework aim to reduce dependency on China by diversifying supply chains and securing long-term reserves. However, the US remains heavily reliant on imports and its efforts are still catching up to China’s established dominance.
Central Asian countries are now seeking to capture more value at home. Leaders are pushing for multi-vector partnerships and greater control. While Western investment remains limited due to the long timelines and significant capital required, China’s Belt and Road Initiative has provided the necessary financing to secure these resources.
In this evolving geopolitical landscape, the competition for critical minerals is not just about securing resources but controlling the entire supply chain. The window for Western countries to enter the race is narrowing as China expands its influence. For Central Asia, strengthening its own value chains and diversifying its partnerships, the region has the opportunity to become the center of global markets, shaping the future of trade and power.