New Delhi [India], May 4 (ANI): The Asian Development Bank (ADB) launched a new financing facility to help countries in Asia and the Pacific develop the critical minerals supply chains required for clean energy, batteries, electric vehicles, and digital technology.

The initiative, titled the Critical Minerals-to-Manufacturing Financing Partnership Facility launched on Sunday, aims to transition the region from a supplier of raw materials to a hub for 'high-value industries like processing and recycling.'

According to ADB, the facility focuses on project preparation, policy reform, and the mobilization of both public and private capital. The program is designed to move developing member countries into advanced manufacturing sectors while ensuring the supply chains remain responsible and sustainable.

'Critical minerals will shape the next industrial era,' said ADB President Masato Kanda at ADB's 59th Annual Meeting. '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,' Kanda added.

The financing structure consists of two primary windows. A grant window focuses on early-stage project work, such as feasibility studies, environmental assessments, and technical assistance. The Government of Japan committed USD 20 million to this window, while the Government of the United Kingdom contributed USD 1.6 million.

'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.

A second catalytic finance window seeks to bring in cofinancing and risk-sharing from external partners. Korea Eximbank and the Korean Trade Insurance Corporation, known as K-SURE, became the first partners for this window, each signing a USD 500 million memorandum.

This rollout builds on the bank's 2025 strategy to support regional value chains. 'ADB is already supporting battery manufacturing and recycling in India, geological data mapping in Mongolia, AI-driven critical metals production and circular approaches in Uzbekistan, a critical minerals strategy in Kazakhstan, and a critical minerals roadmap and regulatory reforms in the Philippines,' the bank said in a statement.

To improve policy coordination, the bank established a Critical Minerals Database to track supply chain information. All projects supported by the new facility must adhere to strict environmental and social requirements, including rigorous due diligence and impact assessments.

The facility aims to meet the rising demand for clean energy while supporting inclusive economic growth and job creation across the region. (ANI)