Abstract
In the context of ongoing global challenges and instability caused by geopolitical risks in the supply of critically important energy transition minerals, as well as the increasing strategic and hedge value of these minerals, this study is particularly relevant. It is demonstrated that, as supply chain security becomes a new priority, Central Asian countries aim to transform key minerals into a reliable strategic asset that accelerates economic growth and stimulates structural shifts in favor of technologically advanced sectors. The authors emphasize the necessity of a systemic approach to addressing the structural issues faced by Central Asian countries, related to the need to expand the extraction and processing of critical minerals both independently and with the involvement of foreign investments. It is suggested that scaling up local processing capacities can be achieved through mobilizing internal production reserves and forming vertically integrated value chains. It is justified that despite Central Asia’s peripheral position in the global value chain, it can become an independent alternative for diversifying supply chains to support the green and digital transition. The main conclusion of the study is that to strengthen their position in the global energy transition, Central Asian countries need to create local added value, develop new extraction and processing technologies for rare earth metals, and build sustainable and reliable supply chains. The study’s results will assist resource-dependent economies in the region in finding new approaches to managing the rare earth metals industry amid geopolitical instability, technological competition, and structural transformation.