Kazakhstan's Development Bank Launches $1 Billion Program for Rare and Critical Materials

Introduction

The Development Bank of Kazakhstan (DBK), a subsidiary of Baiterek Holding, officially announced on October 31, 2025, the launch of a substantial $1 billion financing program. This initiative is specifically designed to fund projects involved in the extraction and processing of rare, rare-earth, and critical materials within the country. The program, set to run from 2025 to 2030, underscores Kazakhstan's strategic ambition to bolster its position in the global high-tech materials market and diversify its industrial landscape.

Program Details and Objectives

The newly introduced financing program aims to support medium and large enterprises undertaking investment projects in this strategically vital sector of Kazakhstan's economy. Key features of the program are designed to be attractive to potential borrowers:

• A minimum financing amount of 5 billion tenge, equivalent to approximately $9.4 million.
• Loan terms extending up to 20 years.
• The elimination of arrangement fees.
• Flexible financing terms and the provision of a grace period.

A mandatory requirement for all borrowers is the confirmation of reserves in accordance with the international Joint Ore Reserves Committee (JORC) code. This ensures adherence to global standards in resource reporting. The program's overarching goals include diversifying Kazakhstan's industrial base, integrating the country into global value chains for high-tech materials, and supporting the objectives outlined in the Comprehensive Development Plan for Rare and Rare-Earth Metals for 2024–2028.

Targeted Materials and Strategic Importance

The program will focus on a broad spectrum of materials crucial for modern technologies, green energy, and electronics. Eligible materials include rare-earth metals such as lanthanides, scandium, and yttrium, alongside critical materials like lithium, cobalt, tungsten, germanium, gallium, and graphite. Kazakhstan possesses significant reserves of these critical minerals and aims to transition from merely exporting raw materials to becoming a producer of high-value finished products.

Marat Yelibayev, Chairman of the Board of DBK, emphasized the program's strategic importance, stating that it 'reflects the Bank's strategic focus on supporting new growth points in the economy' and aims to 'create conditions for Kazakhstan to become a producer of high-value finished products.' This initiative is expected to enhance the competitiveness of the domestic industry, strengthen Kazakhstan's position in the global market for critical materials, create new jobs, and boost exports.

Broader National Strategy

The launch of this program aligns with the strategic course set by President Kassym-Jomart Tokayev, who has advocated for the development of high-tech industries. Kazakhstan has been actively working to attract foreign investment and technological expertise to develop its critical minerals sector, with the mining and metallurgical sector being a cornerstone of its economy. Recent geological studies have indicated that Kazakhstan's rare earth metal reserves exceed previous estimates, further bolstering the country's potential as a global supplier of these strategic resources. The nation is also focusing on specific areas within the rare earth industry, including battery materials, heat-resistant alloys, semiconductor materials, and permanent magnets.