The Asian Development Bank (ADB) has launched a new financing initiative aimed at strengthening the supply chain of critical minerals needed for clean energy, batteries electric vehicles, and digital technologies across the Asia and Pacific region.

The announcement was made on Sunday at ADB’s 59th Annual Meeting held in Samarkand, Uzbekistan, by ADB President Masato Kanda.

The new facility, named the Critical Minerals-to-Manufacturing Financing Partnership Facility, seeks to move the region beyond raw material extraction toward higher-value industries such as processing, manufacturing, and recycling. It will support project preparation, policy reforms, and both public and private sector investments.

President Masato Kanda said countries in the region should not remain only sources of raw materials, but should also benefit from job creation, technology transfer, and value addition generated from these resources.

He added that the initiative aims to build a responsible and resilient supply chain that enables developing member countries to compete in advanced manufacturing sectors while creating new domestic opportunities.

According to ADB, the facility has two main components. The first is a grant window that will fund early-stage project preparation, including feasibility studies, environmental and social assessments, and technical assistance. Japan has pledged USD 20 million, while the United Kingdom has committed USD 1.6 million.

The second component is a catalytic finance window designed to mobilize co-financing and share risks with partners. Korea Eximbank and the Korea Trade Insurance Corporation have each signed preliminary agreements worth USD 500 million.

ADB is already engaged in several related projects, including battery manufacturing in India, geological data mapping in Mongolia, AI-driven metal production in Uzbekistan, and policy reforms in the Philippines’ mining sector. The new facility is expected to further strengthen the bank’s 2025 minerals strategy.

ADB stated that all projects under the initiative will be subject to strict environmental and social safeguard policies, along with rigorous due diligence processes.

The initiative is expected to promote inclusive economic growth and job creation across the region.