President Kassym-Jomart Tokayev ’s proposal for a joint Kazakh-Korean critical minerals company signals a new step in Kazakhstan’s effort to move from resource extraction toward participation in technology development and deep processing, Qazinform News Agency correspondent reports.
Its timing may be particularly valuable. South Korea is still building some of the rare earth separation capabilities it needs, giving Kazakhstan an opportunity to enter the emerging production chain as a development partner rather than joining later as a supplier of raw materials.
The proposal was announced at the first Central Asia-Republic of Korea Summit in Seoul on September 16, following Tokayev ’s talks with South Korean President Lee Jae Myung. The two countries elevated their relations to a future-oriented comprehensive strategic partnership, with economic security, advanced industries, science and technology among its priorities.
Tokayev called for bilateral trade to double and shift toward higher-value goods. Around 80 commercial agreements worth approximately $19 billion were signed during the visit, including a memorandum between Kazakhstan’s national mining company Tau-Ken Samruk and POSCO Holdings.
The memorandum covers cooperation on technologies for processing, separating and refining rare earth materials, as well as producing higher-value goods. Tokayev placed it within a broader objective: creating a full production cycle for critical materials, extending from research and extraction to deep processing.
He also welcomed plans for a joint rare and rare earth metals center in Almaty with the Korea Institute of Industrial Technology and proposed a Comprehensive Program for Trade, Economic and Investment Cooperation for 2027-2030. Taken together, these initiatives indicate that Kazakhstan is seeking more than another foreign-funded extraction project.
The emerging model would connect the country’s resources with Korean research, technology, industrial management and manufacturing demand. Kazakhstan’s traditional advantage in minerals lies in its resource base. Yet the largest share of value is not necessarily created where minerals are extracted.
Rare earth materials must pass through several stages before they can be used in advanced manufacturing. Separation divides mixed concentrates into individual elements such as neodymium and dysprosium. These are then processed into materials used in permanent magnets for electric motors, electronics and other advanced products.
Moving into these stages can generate higher-value exports, skilled employment and technical expertise. It can also give Kazakhstan a more durable position in international supply chains than the export of unprocessed resources alone. Tokayev ’s proposed joint company reflects this logic.
A joint structure could bring research, processing and commercialization into a single partnership, giving Kazakhstan a direct institutional role in decisions about investment, technology and production. That approach is especially relevant because the global rare earth industry remains highly concentrated.