ADB launches critical minerals financing facility
The Asian Development Bank has launched a new financing facility to help countries in Asia and the Pacific develop critical mineral supply chains needed for clean energy, batteries, electric vehicles, and digital technology.
"Critical minerals will shape the next industrial era," ADB President Masato Kanda said at the bank's 59th annual meeting.
"Asia and the Pacific should be more than a source of raw materials. The region should also capture the jobs, technology and value these minerals provide," he said.
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"This facility is about urgency and fairness: building responsible supply chains now, so our developing member countries can compete in advanced manufacturing and create opportunities at home," Kanda added.
The Critical Minerals-to-Manufacturing Financing Partnership Facility aims to help the region move beyond mining into higher-value industries such as processing, manufacturing and recycling.
The facility will support project preparation, policy reforms, public investment, and private financing across critical minerals value chains.
It has two components: a grant window and a catalytic finance window.
The grant window will fund early-stage project work, including feasibility studies, environmental and social assessments, technical assistance, and knowledge sharing.
The Government of Japan has committed $20 million to the grant window, while the Government of the United Kingdom has committed $1.6 million.
The catalytic finance window is designed to attract cofinancing and risk-sharing support from other financing partners.
Korea Eximbank and the Korean Trade Insurance Corporation, known as K-SURE, have each signed a $500 million memorandum as the facility's first partners.
The facility builds on ADB's 2025 strategy to support responsible and sustainable critical minerals-to-manufacturing value chains across the region.
ADB is already supporting battery manufacturing and recycling in India, geological data mapping in Mongolia, AI-driven critical metals production and circular economy initiatives in Uzbekistan, a critical minerals strategy in Kazakhstan, and a critical minerals roadmap and regulatory reforms in the Philippines.
The bank has also worked with partners to establish a Critical Minerals Database to improve information on critical minerals supply chains and support better policy coordination.
All projects supported through the facility will be subject to ADB's environmental and social requirements, due diligence, and impact assessments.
ADB said the facility is intended to help meet rising demand for clean energy and digital technologies while creating jobs and supporting inclusive economic growth in the region.
