China and Turkey Forge Rare Earth Partnership to Meet Growing Global Demand

China Mining 2024

China and Turkey have taken a significant step towards enhancing their cooperation in the rare earth sector, an industry critical to the global energy transition and high-tech manufacturing. Turkish Energy and Natural Resources Minister Alparslan Bayraktar announced on the social media platform X that the two nations signed a preliminary agreement to jointly develop rare earth resources. This move underscores the growing importance of rare earth elements (REEs) in industries such as electric vehicles (EVs) and renewable energy.

Turkey’s Rare Earth Potential

In July 2022, Turkey revealed the discovery of what it claims to be the world’s second-largest rare earth deposit in Eskisehir province, estimated at 694 million tons. This vast resource positions Turkey as a potential key player in the global rare earth market. Plans are already underway to establish rare earth separation and processing facilities capable of extracting 570,000 tons per year of REEs, as Bayraktar disclosed during the China Mining 2024 conference in Tianjin.

Strategic Partnership in Critical Minerals

The newly signed agreement between Bayraktar and China's Minister of Natural Resources Wang Guanghua highlights China's commitment to securing rare earth supplies amid escalating global demand. China, which possesses 44 million tons of rare earth reserves—38% of the global total—remains the world leader in rare earth production and refining, controlling nearly 70% of global output in 2023.

Global Market Implications

Rare earths are indispensable for producing NdFeB magnets, a key component in EVs, wind turbines, and industrial robotics. With increasing demand from the EV industry, China’s largest EV manufacturer, BYD, has also expanded its international production footprint. BYD’s partnership with Turkey’s industry ministry aims to produce 150,000 EVs annually, aligning with global electrification goals.

The Need for Diversification

Geopolitical tensions have driven western nations to reduce their reliance on Chinese rare earths. Companies like Australia’s Lynas Rare Earths and US-based MP Materials are investing in alternative supply chains, focusing on heavy rare earth (HRE) production.

This collaboration between China and Turkey not only secures Turkey’s strategic position in the rare earth market but also reflects the intensifying global race to secure critical minerals for the energy transition.