European demand for critical minerals is reshaping economic diplomacy with Central Asia, as officials and industry leaders gather to balance the EU's supply security with the region's ambitions to move up the value chain. At the International Mining and Metals Forum in Tashkent, delegates examined how investment, technology transfer, and transport corridors could align these interests.
Marat Terterov, founder of the Brussels Energy Club, an independent network of energy experts and policymakers, stressed that Brussels expects more than signature deals. "Brussels expects not just agreements. It expects development of clear investment partnerships with countries like Uzbekistan, Kazakhstan in the broadest sense," he said. He also highlighted the need for investment in mineral processing, industrial supply chains, and transport infrastructure, including the Middle Corridor that links Central Asia to European markets.
Germany's push for diversification
Germany is among the European economies most actively seeking alternative sources of critical minerals, which the EU classifies as vital due to their economic importance and supply risks. "In Germany we need a lot of critical minerals because we invest in renewable energies, we invest in electric cars, we invest in high technology," said Matthias Vollert, Germany's ambassador to Uzbekistan.
In a joint declaration on 29 September, Germany and Kazakhstan endorsed a 2026–2028 roadmap covering industrial cooperation, mineral extraction and processing, and increased production of higher-value goods in Kazakhstan. German firm HMS Bergbau AG is also pursuing a lithium extraction and processing project in eastern Kazakhstan, with potential investment of up to $500 million (approximately €449 million), subject to confirmation of commercially viable reserves. The project remains in the exploration phase.
Uzbekistan's value-added strategy
Uzbekistan is pursuing a similar industrial approach, seeking to develop domestic processing rather than relying primarily on exports of raw materials and concentrates. The state-owned Uzbekistan Technological Metals Complex (TMK), established in 2024, processes tungsten and molybdenum into industrial products such as tungsten oxide and carbide, as well as molybdenum bars and briquettes.
"The main reason is making value. So in every step, in every stage we are making the value and then exporting," said Timur Khikmatullaev, TMK's Special Representative for Global Integration. Germany was the company's first export market, and TMK also reports exports to Belgium, the Netherlands, Türkiye, the United States, Canada, South Korea, and Japan. Shipment records from 52wmb, a commercial trade-data platform, show TMK exported molybdenum products to Belgium and the Netherlands, as well as tungsten oxide to the Netherlands, in August 2026.
TMK is now seeking investment and manufacturing expertise to expand production within Uzbekistan. In September, the company held a roadshow in Berlin, attracting representatives from around 20 German companies and international financial institutions. Discussions covered supplies of critical minerals, technology transfer, and participation in new manufacturing projects. TMK presented a portfolio of more than 140 proposed investment projects, with a combined estimated value of $4.2 billion (approximately €3.77 billion).
On 16 October, TMK and France's Société Générale signed a preliminary term sheet for pre-export financing, following a mandate agreement signed in June to arrange €50 million in financing to support production capacity and export operations. A final loan agreement has not yet been announced.
Beyond Europe: Azerbaijan's role
Cooperation in Uzbekistan's mining sector extends beyond European investors. Azerbaijan's state-owned mining company, AzerGold, established its first foreign subsidiary in Uzbekistan in October. The company is seeking permits to begin an 18-month exploration programme at the Akba gold deposit in the Kashkadarya region. "If the results are going to be positive, we plan to establish the joint venture and then to develop the deposit," said Ilyas Ismayilli, General Director of AzerGold Uzbekistan.
AzerGold is also working towards a trilateral joint venture with Uzbekgeologorazvedka JSC and the Azerbaijan–Uzbekistan Investment Company to explore gold and rare earth minerals in the Navoi region. The partners signed a preliminary agreement in July, but the venture has yet to be formally established.
The evolving partnerships reflect a broader trend: Europe's green transition depends on securing critical minerals, while Central Asian countries are determined to capture more of the economic value from their resources. As central banks shift their gold holdings, the strategic importance of mineral wealth is clear. For Europe, the challenge is to build trust and investment frameworks that benefit both sides.
