Uzbekistan has launched a $2.6 billion initiative aimed at developing its mineral resources, including key elements such as lithium and tungsten, to foster domestic manufacturing and attract U.S. investment. The government plans to extract and process these minerals using modern technologies. The U.S. has expressed interest in this initiative, viewing it as an opportunity to reduce reliance on China for rare earths and strengthen bilateral relations.

Uzbekistan has unveiled a substantial $2.6 billion initiative aimed at tapping into its extensive mineral resources, positioning the nation as a potentially vital source of rare earth elements for U.S. enterprises. On March 7, President Shavkat Mirziyoyev presented a three-year investment plan targeting 76 projects that encompass 28 different elements essential for manufacturing durable goods. Key minerals identified include tungsten, lithium, titanium, and vanadium, although their development has been historically slow due to lack of investment.

The initiative seeks to foster a domestic industrial sector, allowing for the mining of minerals in Uzbekistan to support local production of vehicles, electronics, and high-tech goods. This plan also promises new avenues for trade and investment within the United States. President Mirziyoyev articulated that the goal is to leverage modern technology to enhance the extraction and purification of these minerals, thereby increasing their marketable value.

Furthermore, the initiative includes funding for geological surveys to locate new reserves, and the establishment of technology hubs in Tashkent and Samarkand for training specialists in modern mining techniques. And here, the potential U.S. partnership becomes crucial. The Trump administration has made access to rare earth minerals a priority, seeking to lessen dependency on Chinese imports. Uzbekistan is being recognized in Washington as a crucial ally in this regard.

U.S. Secretary of State Marco Rubio, during a February 21 conversation with his Uzbek counterpart, expressed enthusiasm over “mutually beneficial opportunities for investment in critical minerals.” This Uzbek initiative could serve as a pivotal moment for U.S. engagement in the region, especially as Uzbekistan requires technological advancements to realize its minerals potential.

Prior interest from the U.S. in Uzbekistan’s mineral wealth predates President Trump, with the current administration continuing discussions initiated by the Biden administration. In September 2023, both nations began dialogues aimed at formulating collaborative efforts regarding resource deposits. A memorandum of understanding was signed in September 2024, symbolizing a significant step forward in U.S.-Uzbek relations regarding mineral resource development.

During a visit to Tashkent in November, former U.S. Assistant Secretary of State Donald Lu emphasized that cooperation on critical minerals is integral to the evolving strategic partnership between the two countries. He noted the importance of sustained collaboration and welcomed advancements in critical minerals production, underscored by the signing of the Critical Minerals Memorandum of Understanding in September and Uzbekistan’s inclusion in the Minerals Security Partnership.

The $2.6 billion initiative by Uzbekistan represents a significant opportunity for both the Central Asian nation and the United States to collaborate on critical mineral extraction and processing. This partnership not only aims to boost Uzbekistan’s industrial capacity but also provides the U.S. with strategic access to essential resources, enhancing supply chain resilience. Continued dialogue and cooperation will be vital in realizing mutual benefits derived from this venture.

Original Source: www.newsbreak.com

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