ADB launches new financing facility to boost critical minerals supply chains in Asia-Pacific

The Asian Development Bank (ADB) on Sunday launched a new financing facility to help countries in Asia and the Pacific develop critical minerals supply chains needed for clean energy, batteries, electric vehicles, and digital technology.

"Critical minerals will shape the next industrial era," said ADB President Masato Kanda at ADB'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.

The ADB President added, "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."

The Critical Minerals-to-Manufacturing Financing Partnership Facility is intended to move the region beyond mining and into higher-value industries such as processing, manufacturing, and recycling, according to a release issued by the ADB.

The facility will help prepare projects, reform policies, and support public investment and private financing across critical minerals value chains.

The facility has two parts: a grant window and a catalytic finance window.

The grant window will fund early 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 bring in cofinancing and risk-sharing from other financing partners.

Korea Eximbank and the Korean Trade Insurance Corporation, known as K-SURE, 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 approaches in Uzbekistan, a critical minerals strategy in Kazakhstan, and a critical minerals roadmap and regulatory reforms in the Philippines.

It 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 strict environmental and social requirements, due diligence, and impact assessments.

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, the release added.