Will Turkey join the US and EU's 'critical minerals' alliance? 'It could be at the heart of the alliance'

12PUNTO FOREIGN NEWS

Turkey's position in the 'rare earth elements' market, where the US and China are in intense competition, had remained uncertain. After China, which holds 70 percent of the world's resources, Turkey is one of the countries with the most rare earth elements.

According to claims, Turkey, by joining the Minerals Security Partnership Forum, is very close to forming an alliance with the 'West' in the field of rare earth elements.

According to a report by Middle East Eye (MEE), Turkey has joined the Minerals Security Partnership (MSP) forum to cooperate with the US, the European Union, and other countries on the production of critical raw materials and rare earth elements.

A US State Department spokesperson told MEE, 'The State Department can confirm that the Turkish government has joined the MSP forum. A formal announcement will be made in the coming weeks.'

Rare earth elements are used in the production of many high-tech devices, from smartphone and computer screens to batteries for hybrid and electric cars.

The MSP is a group consisting of 14 countries and the EU that aims to diversify the global secure supply chain for rare earth minerals and other critical minerals.

The reserves discovered in Eskişehir in 2022 could place Turkey in an important position in the global 'rare earth elements' competition

TURKEY HAS THE WORLD'S SECOND-LARGEST RESERVE

In 2022, Turkey announced that it had discovered the world's second-largest rare earth element reserve with a 694 million-ton deposit found in Eskişehir.

The MSP forum, launched in 2024, brings together mineral-producing countries and partners such as Kazakhstan, Namibia, Ukraine, and Uzbekistan to counter China's dominance in the field.

Although no independent study has been conducted on the mine, the discovery has attracted interest from many countries around the world; among them was China, which controls more than 70 percent of the rare earth elements trade.

Turkish officials say they aim to produce 10 thousand tons of oxide, 72 thousand tons of barite, 70 thousand tons of fluorite, and 250 tons of thorium, which is vital for nuclear technology, annually.

According to Middle East Eye, Turkey is expected to become a full member of the MSP in the future.

The Beylikova Fluorite, Barite and Rare Earth Elements Facility is one of the important facilities where Turkey processes critical elements

THE FORUM COULD OPEN MANY DOORS OF OPPORTUNITY FOR TURKEY

The forum could be important for Ankara as it is likely to shape the West's future policies regarding critical raw materials.

Furthermore, the MSP could provide opportunities to create and finance projects to accelerate the production of rare earth elements, from extraction to refining, processing, and recycling.

Turkey is still in the process of building its own infrastructure to construct factories and refineries and needs a large amount of funding and technology investment. The MSP Forum will allow Turkey to present its project to Western credit and development finance institutions, as well as the private sector, for potential support or investment.

In addition, the forum will enable Turkey to benefit from the knowledge and technologies of consumer countries, as well as offer a network of relationships where it can request technical assistance to build the necessary infrastructure.

However, the MSP move is noteworthy because Ankara has been negotiating with China for the past two years to extract rare earth elements in Turkey.

Energy Minister Alparslan Bayraktar is expected to visit China in October and continue negotiations to reach an agreement.

In an interview with Turkish media earlier last week, Bayraktar said he would discuss the issue with China and other countries, and that he kept the door open for possible partnerships outside the MSP.

Minister of Energy and Natural Resources Alparslan Bayraktar

TURKEY WANTS TO BE A PRODUCER INSTEAD OF SELLING RAW MATERIALS

According to claims based on unnamed sources close to the government by MEE, Ankara wants China to build infrastructure in Eskişehir. This way, instead of Turkey just extracting the material and exporting it to China for use, it will be possible for Turkey to produce the final product within its own country.

China's thoughts on the project are not clear. However, Beijing has previously aimed to extract minerals from other countries and purchase them rather than creating added value for their local economies.

In this context, the European Union has intensified its efforts to attract Ankara by offering more favorable alternatives.

According to MEE, EU countries participating in the MSP Forum are taking a series of steps to demonstrate their potential contribution to the rare earth element production process in Turkey.

The EU recently launched a two-year rare earth elements project in Turkey worth 12 million euros (13.4 million dollars) to strengthen Turkey's national rare earth elements ecosystem.

The project also includes the development of the Munzur University Rare Earth Elements Application and Research Center and the establishment of a recycling facility at the General Directorate of Mineral Research and Exploration.

The program also aims to provide training and consultancy services to small and medium-sized enterprises and stakeholders in the sector.

Turkey holds 73 percent of the world's thorium deposits. The thorium mineral is of great importance in the production of advanced technological tools

RARE ELEMENTS ARE THE 'NEW OIL'

EU Delegation Chargé d'Affaires J. Vilcinkas described rare earth elements as 'playing the role in the future of energy that oil and natural gas play today' in his speech at the opening ceremony of the mineral forum held in Tunceli, Turkey, in July.

Vilcinkas used the following expressions in his speech:

'Turkey could be at the heart of this. Not only as a rising mining hub (where technology and investment are needed), but also as a product developer and an innovative country.'

Vilcinkas added that the world's green and digital transformation cannot be completed without rare earth elements, and that Turkey's national electric car manufacturer Togg and solar panel manufacturers need them.

The EU is largely dependent on Turkey for imports of boron, a mineral used in many industries. Turkey holds 73 percent of the world's reserves of this valuable mineral.

Vilcinkas said, 'While the demand for rare earth metals is expected to increase fivefold by 2030, China will carry out 90 percent of rare earth metal processing and 60 percent of lithium processing and production.'

TURKEY IS AT THE DECISION STAGE

Turkish officials emphasize that they are open to cooperation with European and Western countries regarding the Eskişehir deposit.

In the MEE report, one of the Turkish sources is quoted as saying, 'There is no finished deal with China, we have conditions. Turkey will not sign a deal with Beijing unless it agrees to make the final product in Turkey.'

Earlier this year, China imposed an export restriction on mining technology used for rare earth elements. According to MEE, it is not yet clear whether Beijing will make an exception to cooperate with Turkey.

On the other hand, there are not many companies in Europe that can start working quickly to help Turkey extract the minerals. Although the rare elements market is witnessing intense competition between the US and China, China currently has clear dominance in the market.