Kazakhstan and China Shift from a Raw Materials Partnership to High Technology
President Kassym-Jomart Tokayev's working visit to Shanghai marked a new phase in Kazakhstan–China relations. Instead of relying primarily on raw material exports, Astana presented Beijing with a concept for an integrated industrial ecosystem spanning metal extraction, mineral processing, data centers, and artificial intelligence. The visit resulted in a portfolio of agreements worth more than $15 billion.
The highlight of the visit was talks with CATL, the world's leading battery manufacturer. The Chinese company expressed its readiness to build a battery manufacturing plant in Kazakhstan, which would become the first large-scale facility of its kind in Central Asia. Kazakhstan emphasized the importance of establishing a complete value chain—from processing domestically mined ores to manufacturing finished batteries and training local engineers.
At the same time, the country is advancing its digital infrastructure agenda. Kazakhstan plans to launch the Data Center Valley project near Ekibastuz, creating a major computing infrastructure hub. To reduce risks, the country is diversifying its partnerships, with both the U.S.-based NVIDIA Corporation and Chinese operators participating in the initiative.
A key challenge for these ambitious industrial and digital projects will be ensuring a stable energy supply. As a first step, Kazakhstan signed an agreement with China's CCCC to develop a 600 MW pumped-storage hydropower plant in the Kargaly Valley. The facility is expected to help balance electricity demand during peak consumption periods and strengthen the country's energy infrastructure.
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