ADB Unveils Minerals-To-Manufacturing Facility To Boost Asia-Pacific Critical Mineral Supply Chains

(MENAFN- KNN India) New Delhi, May 4 (KNN) The Asian Development Bank (ADB) over the weekend launched a new financing facility aimed at strengthening critical minerals supply chains across Asia and the Pacific.

The initiative is designed to support sectors such as clean energy, batteries, electric vehicles, and digital technologies.

Speaking at the ADB 59th Annual Meeting, ADB President Masato Kanda,“Critical minerals will shape the next industrial era. 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.”

“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.

Facility to Promote End-to-End Value Chains

The newly launched Critical Minerals-to-Manufacturing Financing Partnership Facility aims to help countries transition from mining to higher-value activities such as processing, manufacturing, and recycling.

The facility will support project preparation, policy reforms, and financing across the value chain, combining public and private investment.

Two-Part Financing Structure

The initiative comprises two components: a Grant Window to fund early-stage activities such as feasibility studies, environmental and social assessments, and technical assistance, with Japan committing USD 20 million and the United Kingdom pledging USD 1.6 million; and a Catalytic Finance Window aimed at mobilising co-financing and risk-sharing, with initial partners including Korea Eximbank and K-SURE, each committing USD 500 million through memoranda of understanding.

Growth Objectives

The facility builds on ADB's 2025 strategy to develop sustainable critical minerals value chains.

The initiative is expected to help meet rising demand for clean energy and digital technologies while promoting job creation and inclusive economic growth across the region.

(KNN Bureau)

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