The EU is expanding access to Kazakhstan’s and Uzbekistan’s resources to reduce reliance on China, which dominates regional critical raw material exports. Brussels offers to develop full value chains locally rather than merely buying ore.

The EU enforces strict environmental standards; experts criticize Beijing for ecosystem damage, prompting China to emphasize “green” cooperation. Over eighteen months, Chinese investments in Central Asia’s energy grew to $4.1 billion and in manufacturing to $11.8 billion.

CHINA ADAPTS TO EU COMPETITION

In June 2025, the European Commission listed the Sarytogan graphite deposit as strategic under the Critical Raw Materials Act and began seeking investors with EU contract support. Sarytogan lies between Europe and China, which processes over 90 percent of world graphite.

In August 2024, the EBRD acquired a 17.36 percent stake in Sarytogan Graphite for €3 million—its first direct investment in Central Asian graphite. Germany also secured lithium: HMS Bergbau AG signed a $200 million deal in mid 2023, and German firms formed a Kazakhstan consortium in early 2024.

CHINA RAISES MINING STANDARDS

China’s revised Mineral Resources Law, effective 1 July 2025, for the first time mandates ecological restoration plans before mining. It raises ESG requirements but faces criticism for vague restoration provisions and limited community engagement. Although domestic, China urges these standards abroad, affecting Central Asian projects.

To control supply chains, China pursues vertical integration. East Hope Group’s $12 billion Kazakhstan project will integrate mining, processing, electrolysis, and power generation, creating up to 10 000 jobs and a full industrial ecosystem.

In sum, competition for critical materials will intensify, pushing Central Asian states to tighten environmental and technological standards. The EU will wield “soft power” via financing, green norms, and information campaigns, while China will expand integrated clusters and its own expert and media outreach.

Map source: Sarytogan Graphite Limited