The Asian Development Bank has announced a new program based on grants and co-financing to strengthen mineral supply chains for clean energy, electric vehicles, and digital technologies.
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The Asian Development Bank (ADB) has announced a new financing facility to help Asian countries develop supply chains for essential minerals needed for clean energy, batteries, electric vehicles, and digital technologies.
At the 59th Annual Meeting, ADB President Masato Kanda said that essential minerals will shape the next industrial era. "Asia and the Pacific must not only be a source of raw materials, but also a partner in the jobs, technology, and value they create," he said.
The facility, which is urgently needed and based on equity, aims to build responsible supply chains that will help developing member countries compete in advanced manufacturing and create opportunities at home.
The Essential Minerals to Production Financing Partnership Program will help move minerals from extraction to higher-value industries such as processing, manufacturing, and recycling.
The program will support project preparation, policy reform, and public investment and private financial support in the critical minerals value chain.
The facility is divided into two parts: grants and catalytic finance.
The grants will finance initial project work, including feasibility studies, environmental and social assessments, technical assistance, and knowledge exchange.
The Government of Japan has committed $20 million in grants, while the UK Government has committed $1.6 million.
Catalytic Finance is designed to leverage co-financing and risk-sharing from other financial partners.
Korea Exim Bank and the Korea Trade Insurance Corporation have each signed a $500 million Memorandum of Understanding as partners.
The facility is based on a strategy to support a responsible and sustainable ‘critical minerals-to-manufacturing’ value chain.
ADB is already supporting battery production and recycling in India, geophysical data mapping in Mongolia, AI-driven critical metals production and a circular approach in Uzbekistan, a critical minerals strategy in Kazakhstan, and a critical minerals roadmap and regulatory reforms in the Philippines.
ADB has also worked with partners to establish a ‘critical minerals’ database to improve supply chain information on critical minerals and support better policy coordination.
All projects supported through this facility will be subject to ADB’s strict environmental and social requirements, due diligence, and impact assessments.
The facility aims to help meet the growing demand for clean energy and digital technologies, while creating jobs and supporting inclusive economic growth in the region.
