ADB Launches Critical Minerals Financing Mechanism

Tashkent, Uzbekistan (UzDaily.com) — The Asian Development Bank (ADB) has announced the launch of a new financial mechanism aimed at supporting countries in Asia and the Pacific in developing supply chains for critical mineral resources. These raw materials are essential for the production of clean energy technologies, batteries, electric vehicles, and digital solutions.

The initiative was announced by ADB President Masato Kanda at the bank’s 59th Annual Meeting. He said critical minerals will shape the next industrial era and emphasized that the region should not only supply raw materials but also gain additional benefits in the form of jobs, technology, and added value. He noted that the new mechanism is designed to build sustainable and responsible supply chains that enable developing member countries to compete in high-tech industries.

The new partnership financing mechanism, titled “From Critical Minerals to Manufacturing,” is aimed at moving beyond raw material extraction toward higher-value stages of the supply chain, including processing, manufacturing, and recycling. It provides support across all stages, including project preparation, improvement of public policy, and mobilization of investments from both public and private sectors.

The structure of the mechanism includes two key components. A grant window will finance early-stage project preparation, such as feasibility studies, environmental and social assessments, technical assistance, and knowledge sharing. The Government of Japan has announced $20 million in funding for this purpose, while the Government of the United Kingdom has committed $1.6 million.

The second component, a catalytic financing window, is designed to mobilize additional funding and share risks with financial partners. Early participants include the Export-Import Bank of Korea and the Korea Trade Insurance Corporation, each of which has signed memorandums of understanding to provide $500 million.

The initiative is being implemented under ADB’s strategy through 2025, which focuses on developing sustainable value chains from extraction to manufacturing. The bank is already involved in several regional projects, including battery production and processing in India, geological mapping in Mongolia, the introduction of artificial intelligence and circular economy technologies in the critical metals sector in Uzbekistan, the development of a national strategy in Kazakhstan, and reforms in the Philippines.

In addition, ADB, together with partners, has developed a specialized database on critical mineral resources to improve transparency in supply chains and enhance coordination of public policies. All projects under the new mechanism will be subject to strict environmental and social assessments as well as comprehensive due diligence procedures.

The bank said the new initiative aims to meet growing demand for clean energy and digital technologies while also promoting job creation and inclusive economic growth.

Founded in 1966, the Asian Development Bank has 69 member countries, 50 of which are in Asia and the Pacific region. It is one of the key multilateral institutions supporting sustainable development, infrastructure, and improved living standards.