Turkey is seeking to form a partnership with China to develop and process its newly discovered rare earth elements deposit, potentially enhancing its appeal to Chinese electric vehicle (EV) and battery manufacturers. Energy Minister Alparslan Bayraktar is scheduled to lead a delegation to China in October for advanced negotiations on the collaboration, according to sources familiar with the discussions who requested anonymity due to the sensitive nature of the talks.
This initiative follows Turkey’s formal application to join the BRICS group of emerging market nations, which includes China and Russia. Turkey hopes that successful negotiations could attract Chinese companies like BYD Co., the world’s largest electric vehicle manufacturer, to consider expanding their operations in Turkey. President Recep Tayyip Erdogan and President Xi Jinping discussed this potential cooperation during their meeting in Kazakhstan in early July.
The Turkish Energy and Natural Resources Ministry declined to comment, and China’s Ministry of Commerce did not respond to requests for comment.
Two years ago, Turkey announced the discovery of a significant rare earths reserve in Beylikova, near Eskisehir in central Anatolia. The Turkish Energy Ministry has expressed readiness to establish a refinery at this site to process the raw material. Industry and Technology Minister Fatih Kacir emphasized last month that Turkey aims to become a key player in the global rare earths supply chain, from raw material extraction to finished electric vehicles and batteries.
China has dominated the rare earths industry for decades, controlling both mining and refining processes. This dominance has raised concerns in Washington and Brussels, prompting efforts to diversify sources of rare earths and other critical minerals. These efforts have faced numerous obstacles, including technical issues, regulatory delays, and public resistance.
Chinese manufacturers are increasingly seeking access to the European Union market, where Turkey’s customs agreement provides an advantageous entry point. BYD has already committed to building a factory in Turkey, and negotiations are ongoing with other Chinese automakers, including Chery Automobile Co Ltd., SAIC Motor Corp., and Great Wall Motor Co.
The Chinese state-run newspaper Global Times highlighted the opportunity for cooperation between China and Turkey arising from this rare earths discovery. Turkey aims to refine the Beylikova deposit into high-purity individual rare earth elements, enhancing its strategic position in the global market.
