ADB Launches Financing Facility To Build Asia’s Critical Minerals Supply Chains

KUALA LUMPUR, May 3 (Bernama) -- The Asian Development Bank (ADB) today 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.

Called the Critical Minerals-to-Manufacturing Financing Partnership Facility, ADB said the facility is intended to move the region beyond mining and into higher-value industries such as processing, manufacturing, and recycling. 

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

ADB said the facility has two components, namely a grant window and a catalytic finance window.

It said the grant window would fund early project work, including feasibility studies, environmental and social assessments, technical assistance and knowledge sharing. 

“The government of Japan has committed US$20 million to the grant window, while the government of the United Kingdom has committed US$1.6 million,” it said.

Meanwhile, the catalytic finance window is designed to mobilise co-financing and risk-sharing from other financing partners. 

Korea Eximbank and the Korean Trade Insurance Corporation, known as K-SURE, each signed a US$500 million memorandum of understanding as the facility’s first partners.

-- BERNAMA