Israel envoys back Pax Silica investments

“We look at the Pax Silica [initiative] as a great opportunity for moving forward. We start[ed] it ourselves,” he said.

“You don't want to be left behind. If you don't want to be left behind, be in front. Be the leader,” Fluss added.

Pax Silica is a US-led initiative aimed at securing allied supply chains for critical minerals, semiconductors, AI and advanced manufacturing, with Israel as a founding member contributing technological expertise.

The Philippines officially joined the initiative in 2026, with the government announcing plans for a roughly 1,620-hectare industrial hub in New Clark City focused on AI, semiconductors, advanced manufacturing and mineral processing.

The administration remains optimistic about the potential for major investments and the creation of direct and indirect jobs. However, critics have raised concerns over environmental and water pressures, possible displacement, resource extraction, weak technology transfer and continued reliance on low-cost Filipino labor. They have also questioned the initiative’s geopolitical implications and potential dual-use military applications.

Fluss, who currently serves as policy coordinator for the Emerging and Disruptive Technologies Strategic Department at the Ministry of Foreign Affairs, acknowledged that environmental and regulatory safeguards are necessary to prevent negative spillover effects.

“[M]inerals are very important in modern technology and this is why they're called today the critical minerals and there are in global shortage. So we need to create the value chain of critical minerals accessible to make sure that the economy [and] the technology can continue to develop and to grow,” he said.

“[We] want to work with countries in bringing and working together in developing modern technologies that will help us in extracting the minerals in a smart [and] environmental way.”

Fluss likewise said the Pax Silica initiative would allow member nations, including the Philippines, to develop stronger ties — a sentiment Philippine Ambassador to Israel Eileen Mendoza echoed, describing the initiative as “a very good opportunity for the Philippines.”

“The opportunity there is to bring investments, to bring jobs to the Philippines, to have input in our critical minerals sector, all of it,” she told reporters in Tel Aviv last Monday.

“For me, it's a business opportunity that I know that the Board of Investments or the Department of Trade and Industry is working very hard to bring back manufacturing into the Philippines.”

In July, BCDA President and CEO Engr. Joshua Bingcang said Pax Silica investments, once fully developed over 10 to 15 years of construction, could reach up to $70 billion, based on their scientific study, while generating 500,000 to 800,000 jobs. He said the project would help retain Filipino talent while building domestic industries.

Bingcang also disputed concerns about the initiative’s potential environmental impact and displacement of indigenous peoples, saying the project would incorporate sustainable water management and clean and green energy.

“It is not true because we make sure that we are compliant with the environment. Even though it is 1,600 hectares, under our masterplan, there is a requirement of at least 40 percent open space for parks, open spaces for the workers to increase their productivity,” he said.

He further stressed that no mining activity would take place at the site and that the project would not produce arms and ammunition for defense.

“This project is a win for the Philippines. Pax Silica New Clark City is envisioned as a Philippine hub for industries of the future; it is intended to create better jobs for Filipinos and build capabilities that will remain in the country, and Pax Silica can help move the Philippines higher in the global value chain,” he said.