Türkiye eyes strategic partnership with China on rare earth elements, reports say
Beylikova Fluorite, Barite and Rare Earth Elements Pilot Plant will produce 7 rare elements, oxides for first time. (AA Photo)
The Turkish government is preparing to send Turkish Energy and Natural Resources Minister Alparslan Bayraktar to China in October for advanced discussions on rare earth elements, according to a Bloomberg report.
This move comes after reports of Türkiye applying to join the BRICS group of emerging market nations, which includes China and Russia. Sources familiar with the matter, who requested anonymity due to the sensitivity of the discussions, confirmed the plans to Bloomberg.
On another side, Bayraktar announced Tuesday on social media platform X that they met with Energy China officials.
Bayraktar said, “We met with Mr. Lin Xiaodan, President of Energy China and the accompanying delegation at our Ministry. We discussed the details of large-scale investment opportunities in the field of renewable energy in our country, which we discussed during our trip to China in May.”
Türkiye’s strategic move to partner with China
The upcoming talks aim to establish collaborations with Chinese companies, including BYD, the world’s largest electric vehicle (EV) manufacturer.
Türkiye is optimistic that a successful partnership could lead to BYD and other Chinese firms considering battery production in Türkiye, following a recent agreement to manufacture EVs in the country.
High-level Erdogan-Xi meeting sparks collaboration talks
In early July, President Recep Tayyip Erdogan met with Chinese President Xi Jinping in Kazakhstan to explore potential cooperation on Türkiye’s rare earth element resources.
These elements are critical for various industries, including wind turbines, military hardware, and electric vehicles, making them a strategic focus for both nations.
The Turkish Ministry of Energy and Natural Resources has declined to comment on the ongoing negotiations to Bloomberg. Similarly, China’s Ministry of Commerce has not responded to requests for comment.
Türkiye’s rare earth ambitions: From discovery to refining
In 2022, Türkiye announced the discovery of a substantial reserve of rare earth elements in Beylikova, near Eskisehir in central Anatolia. The Energy and Natural Resources Ministry has expressed readiness to build a refinery at the site to process the raw materials.
“With this infrastructure, we have the opportunity to carry out R&D studies in Türkiye to produce qualified products such as optoelectronic materials and magnets used in high-tech sectors, especially wind energy industry, electric vehicles, aviation and space technologies.” stated Türkiye’s Industry and Technology Minister Mehmet Fatih Kacir in a talk at Munzur University in Tunceli, Türkiye.
China’s rare earth dominance and Türkiye’s strategic role
China has built a dominant position in the mining and refining of rare earth elements over the past three decades. This dominance has raised concerns in Washington and Brussels, where alternative supply chains have faced challenges, including technical difficulties, regulatory obstacles, and social opposition.
Chinese manufacturers are increasingly interested in enhancing their access to the European Union, with which Türkiye has a customs agreement. As the EU begins to impose tariffs on Chinese-made electric vehicles, BYD has already signed a deal to establish a factory in Türkiye. In addition, Türkiye is holding separate talks with other Chinese automakers, including Chery Automobile Co Ltd., SAIC Motor Corp., and Great Wall Motor Co.
Is China fooling Türkiye in trade?
Türkiye’s trade relationship with China has evolved into a complex and often troubling dynamic. While celebratory headlines highlight a 51% increase in exports to China, the underlying details reveal a more concerning picture.
As the notorious trade imbalance continues to grow year after year, China’s imports from Türkiye primarily consist of raw materials rather than end products, to the disadvantage of Türkiye.
