Turkey is in talks with the United States over developing its vast rare earth reserves in central Anatolia, shifting focus toward its NATO ally after earlier negotiations with China and Russia faltered, according to people familiar with the discussions who spoke to Bloomberg.
The potential partnership is related to deposits in Beylikova, in Eskişehir province, believed to be the world’s second-largest rare earth reserve after that in China. Ankara and Washington are weighing joint development and refining projects following last month’s White House meeting between US President Donald Trump and Turkish President Recep Tayyip Erdoğan.
Talks with China, which signed a memorandum of understanding with Turkey in October 2024, slowed after Beijing resisted transferring technology and insisted on processing materials in China. Efforts with Russia have also produced no results. Turkish officials, meanwhile, say Ankara is determined to ensure local refining capacity and technology transfer in any deal.
Turkey’s state-run Eti Maden opened a pilot facility in 2023 to process the 17 rare earth elements found in Beylikova, including lanthanum, cerium and neodymium. Initial tests suggest the deposits could be commercially viable, with Ankara planning to expand the site and seek international certification to attract investors.
The US administration under Joe Biden and the European Union have moved to reduce dependence on China, which controls about 70 percent of global rare earth production and nearly 90 percent of processing capacity. The minerals, often called “industrial gold,” are critical for defense systems, satellites, renewable energy and electric vehicles.
Turkey’s deposits, estimated at nearly 700 million tons, is expetced to make the country an important long-term supplier, though its projected annual output would still cover only a fraction of US demand. Washington has already signed similar agreements with partners such as Ukraine, though conflict has hindered those projects.
For Erdoğan, the Beylikova site is also part of efforts to boost bilateral trade with the United States to $100 billion annually. Whether the two sides can reach agreement may depend on Ankara’s insistence that refining and manufacturing take place on Turkish soil.