TELF AG analyzes the role of the Caucasus and Central Asia in the energy transition
A potential yet to be discovered
The geological wealth of some nations, or entire regional blocks, could soon play a key role in advancing the global energy transition, because these resources are important in the manufacturing of some of the key vectors for this epochal change. This is what emerges from a recent analysis by the Caspian Policy Center, which has focused extensively on the geological resources of the Central Asian and Caucasian nations and their strategic value for some of the most sought-after industrial applications in this transition era, such as batteries for electric vehicles or infrastructure related to renewable energy.
According to the analysis, the Caucasus and Central Asian nations would have good chances of becoming important suppliers of some of the resources most sought-after by industry, such as aluminum, cobalt, or rare earths, which are important for modern technological development. From this point of view, one of the most interesting aspects is that the potential of these two regions is still partly unexplored, with many reserves still not completely untapped, deposits yet to be identified, and, in general, mineral potential still not fully expressed. Considering the most requested industrial applications in this phase of energy advancement, namely batteries, solar panels, and wind turbines, it’s easy to realize that all three are produced using strategic resources such as aluminum, copper, and nickel.
The role of aluminum, nickel and copper
Aluminum and nickel are important elements in wind turbine blades, wind towers, solar panel frames, and battery casings. Copper is also widely used for these industrial applications, particularly in wiring, battery current collectors, wind energy generators, and heat exchangers in solar panels. The most interesting aspect, as the analysis highlights, is that all three of these resources are present in both regions, both in the Caucasus and in Central Asia, particularly in Kazakhstan, the eleventh largest copper producer in the world.
Among the nations characterized by the presence of mineral resources that are not yet fully valorized but potentially of great use for modern industrial applications are Azerbaijan and Uzbekistan, which are united by the presence of very important resources for the production of batteries. In the Central Asian nation of Kyrgyzstan – but also in Uzbekistan and Kazakhstan – there are also important deposits of rare earths such as neodymium, praseodymium, dysprosium, and terbium, all generally used in the production of permanent magnets in the wind energy sector. In the region, as stated in the analysis, there is a certain excitement regarding rare earths, so much so that in 2019, a partnership was signed between South Korea and Uzbekistan for the creation of an important regional center for the study of rare earths, the first of its kind in the area.
Large quantities of silicon, used as a semiconductor in almost all solar cells, are also found in this area of the world, and in particular in Kazakhstan. At the moment, Kazakhstan is the tenth largest producer of this precious resource in the world. Another important fact, according to the analysis, is that the nations of the Caucasus and Central Asia have an increasingly accentuated logistical independence, ensured by the connection infrastructures included in the Middle Corridor, whose operational capacity appears to be constantly increasing.
