China’s mineral dominance under threat? US pushes firms into Central Asia’s critical-mineral sector

The United States is stepping up efforts to secure critical minerals from Central Asia as Washington seeks to reduce its reliance on China, which dominates the processing of several minerals used in electric vehicles, renewable energy, electronics and defence systems.

Speaking at the Bloomberg New Economy Forum in New Delhi, US Ambassador to India Sergio Gor said Washington was encouraging American companies to explore opportunities in the resource-rich region, where significant mineral deposits remain underdeveloped.

“You have some of the richest deposits in Central Asia, and they’re looking for reliable, trusted partners, and we believe American companies can offer those solutions,” Gor said.

He added that the United States wanted to compete for business in the region and showcase American technology to countries seeking investment and expertise.

“These governments are sovereign nations; they’ll decide what’s best for them. But we genuinely believe we do have the best technology, and so showcasing that to these regions is incredibly important to this administration,” he said.

Why Central Asia matters to the US

Gor said the US is taking more than 200 companies to Central Asia to showcase American technology and explore commercial opportunities. He also pointed to growing interest from American businesses in the region.

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The push comes as the US seeks to diversify critical-mineral supply chains and reduce its dependence on China. Beijing has a dominant position in the processing of several minerals, giving it considerable influence over supplies of materials used in strategic industries.

A June 2026 policy brief by the Centre for Economic and Financial Policy Research said a 2025 International Energy Agency assessment found that China led refining for 19 of the 20 minerals it examined, controlling an average of roughly 70 per cent of the market.

China’s position is particularly significant for minerals such as tungsten, processed cobalt and gallium, which have applications across industrial and technology supply chains.

Beijing has also imposed restrictions on certain mineral exports amid trade tensions with Washington, highlighting the risks for countries and companies dependent on concentrated supply chains.

Central Asia offers resources, but investment faces hurdles

Central Asia comprises Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. The region has established mining industries but also contains significant underdeveloped deposits of critical minerals and rare earth elements.

The June policy brief said the US Geological Survey had identified 384 Central Asian deposits of rare metals and rare earth elements about a decade ago.

Washington has already been pursuing closer engagement with the region. The brief noted that US special envoy Sergio Gor met representatives of all five Central Asian countries at their first in-person Critical Minerals Dialogue in Astana, Kazakhstan, in June 2026. The meeting preceded the Astana Mining and Metallurgy Conference, which attracted more than 20 US companies and government officials.

The United States has also discussed financing arrangements for mineral projects in the region. These included a $700 million letter of interest in financing Kazakh tungsten extraction, according to the brief.

However, the presence of mineral deposits does not automatically translate into commercially viable supply chains. Investment will depend on financing, regulatory certainty, transport infrastructure and the availability of processing facilities.

The region also faces challenges linked to political and legal uncertainty, corruption risks and logistics. Limited infrastructure and capacity constraints along routes crossing the Caspian Sea could complicate the movement of minerals to international markets.

Mining alone may not weaken China’s position

The biggest challenge for Washington is that extracting minerals outside China will not necessarily eliminate dependence on Chinese processing.

Critical-mineral supply chains involve several stages, from mining and refining to the manufacture of specialised materials and components. If new Central Asian mines continue to rely on Chinese facilities to process their output, the United States could remain exposed to Beijing’s influence further down the supply chain.

The policy brief warned that without simultaneous investment in processing capacity and transport infrastructure, mining projects could continue to perpetuate Chinese control through dependence on Chinese processing and downstream industries.

This means the success of Washington’s strategy will depend on whether American companies can build commercially sustainable operations with local partners, rather than simply secure access to mineral deposits.