US Allies Push for Major Investments in Mineral Projects to Secure Supply
Allies led by the United States are seeking to leverage financial networks to increase investments in mineral projects, with the goal of securing a stable supply of critical resources for clean energy and high-tech industries.
Jose Fernandez, U.S. Undersecretary of State for Economic Development, Energy, and the Environment, told Bloomberg that the Minerals Security Partnership (MSP) has supported 13 projects since its inception in 2022. The MSP, which includes development finance and export credit agencies from 14 Western countries and the European Union, plans to collaborate with the private sector to fund an additional 32 projects amid falling prices of key minerals.
“If half of these projects are successful in the next year and a half, that would be remarkable,” Fernandez said.
The MSP was established to ensure a reliable supply of critical minerals, which are essential for applications such as electric vehicles, wind turbines, and missile guidance systems. Fernandez highlighted efforts to accelerate the approval process for mineral projects, noting that companies have faced significant challenges due to bureaucratic hurdles.
“Companies are telling us that they are losing bids and projects because there are too many hoops,” he said. “We need to step up our efforts in this area—time waits for no one.”
The recent drop in mineral prices presents both opportunities and challenges, Fernandez pointed out. While lower prices benefit manufacturers of batteries and high-tech equipment, they also hinder the development of new mining projects. He warned against long-term over-reliance on excess supply, which he said has historically proven to be harmful.
Financial and credit institutions within the MSP, such as the U.S. International Development Finance Corp. (IDFC) and the Export-Import Bank (EXIM), will work to streamline the project approval process. Fernandez also called for greater cooperation among participating countries to avoid duplication of efforts, saying, “We should not fight among ourselves.”
