The Asian Development Bank (ADB) has launched a new financing facility aimed at helping countries in Asia and the Pacific develop critical minerals supply chains essential for clean energy and advanced technologies.

The initiative, called the Critical Minerals-to-Manufacturing Financing Partnership Facility, was unveiled during ADB’s 59th Annual Meeting in Samarkand, Uzbekistan, on 3 May.

“Critical minerals will shape the next industrial era,” ADB president Masato Kanda said, noting the need for the region to move beyond being a source of raw materials and instead capture greater economic value through jobs, technology and manufacturing.

The facility seeks to support industries beyond mining, including processing, manufacturing, and recycling, while helping governments prepare projects, implement policy reforms, and attract both public and private investments.

It will operate through two components: a grant window and a catalytic finance window. The grant window will fund early-stage project development such as feasibility studies, environmental and social assessments, and technical assistance. Japan has committed $20 million to this component, while the United Kingdom has pledged $1.6 million.

Meanwhile, the catalytic finance window aims to mobilize cofinancing and risk-sharing from partners. Korea Eximbank and the Korean Trade Insurance Corporation (K-SURE) have each signed $500 million memoranda as initial partners.

ADB said the facility builds on its 2025 strategy to promote sustainable critical minerals value chains. The bank is already supporting related initiatives across the region, including battery manufacturing and recycling in India, geological data mapping in Mongolia, and policy development efforts in countries such as Kazakhstan and the Philippines.

Projects supported under the facility will be subject to ADB’s environmental and social safeguards, as well as due diligence and impact assessments.

ADB said the program is expected to help meet rising demand for clean energy and digital technologies while generating jobs and supporting inclusive economic growth across the region.