ADB Launches Critical Minerals Financing Facility to Build Asia-Pacific Supply Chains

The Asian Development Bank has launched the Critical Minerals-to-Manufacturing Financing Partnership Facility, a new initiative aimed at supporting the development of critical mineral supply chains across Asia-Pacific, enabling the region to move beyond raw material extraction into processing, manufacturing, and recycling. The facility has secured initial commitments of $20 million from Japan and $1.6 million from the United Kingdom, alongside $500 million memoranda each from Korea Eximbank and the Korean Trade Insurance Corporation.

The facility includes two components: a grant window for early project preparation work such as feasibility studies, environmental assessments, and technical assistance; and a catalytic finance window designed to attract cofinancing and risk-sharing from other partners. ADB is currently supporting battery manufacturing and recycling in India, geological data mapping in Mongolia, AI-driven critical metals production in Uzbekistan, a critical minerals strategy in Kazakhstan, and regulatory reforms in the Philippines. All projects supported through the facility will be subject to ADB's environmental and social safeguards.

Critical minerals including lithium, cobalt, nickel, and rare earths are essential inputs for clean energy infrastructure, batteries, electric vehicles, and digital technology. Asia-Pacific holds significant reserves of many of these materials, but much of the value addition — processing, refining, and manufacturing — has historically occurred outside the region. The facility is designed to shift this dynamic by supporting countries in developing higher-value activities domestically, creating jobs and technology transfer opportunities alongside climate-related supply chain resilience.

India's inclusion in the ADB's existing critical minerals support activities signals its growing strategic importance in regional and global supply chain restructuring. As India scales up its electric vehicle manufacturing sector and battery storage ambitions, access to processed critical minerals and the development of domestic recycling capabilities will be central to its competitiveness. The new financing facility is expected to unlock private capital alongside public development finance, supporting the broader goal of diversified, sustainable critical mineral supply chains across the region.

Key figure — $20 million initial grant from Japan and $500 million commitment from Korea Eximbank