Asia and the Pacific Can Become a Powerhouse in Transforming Raw Minerals into Clean Energy Technologies

Asia and the Pacific has the potential to become a powerhouse in transforming raw minerals into the technologies that power digitalization and the clean energy transition, driven by the region's abundant natural resources, strong manufacturing base, and skilled labor force. The Asian Development Bank (ADB) is actively considering projects to help strengthen responsible and sustainable practices across the value chain, from critical minerals exploration and extraction to technologies manufacturing.

Key Takeaways:

• The global demand for critical minerals is surging, driven by the rapid shift toward clean energy and advanced digital technologies, with Asia and the Pacific well-positioned to meet this demand by localizing manufacturing and diversifying its supply chains.
• Supply chains are highly concentrated geographically, with disruptions in transporting supplies leading to shortages and elevated costs, affecting developing member countries' efforts to develop nascent industries.
• ADB will provide governments with technical assistance, policy advice, and loans to strengthen their capacity to create the enabling environment for investments and innovation, and help private companies seize opportunities through loans and de-risking solutions.
• ADB will ensure strong environmental, social, and governance standards and support local value addition in mineral supply chains, and promote best international practices on environmental management and engage with partners such as the Extractive Industries Transparency Initiative (EITI) to improve transparency and data systems.
• ADB has extensive experience in supporting complex infrastructure projects, manufacturing, and cross-border trade, and brings strong, trusted relationships with its developing member countries.
• ADB has engaged with civil society representatives and will continue to engage with civil society organizations (CSOs) as it implements the approach and develops project concepts.
• The next steps for ADB include developing a multi-donor financing facility, expanding financing volumes, and supporting junior miners, with a mid-term review planned for 2027 or early 2028.

Statistics:

• The clean energy market is expected to triple to more than $2 trillion by 2035, creating almost 3 million jobs - mostly in Asia and the Pacific.
• Global data center capacity is growing by 15% annually, with the region expected to contribute about a third of this growth.
• The demand for critical minerals is rising fast, driven by the clean energy market and advanced digital technologies.
• ADB has extensive experience in supporting complex infrastructure projects, including modern power transmission and distribution systems and large hydropower plants.
• The region is rich in critical minerals, with a strong industrial base and skilled workforce.

Sources:

• Asian Development Bank (ADB), "ADB's New Approach to Help Asia and Pacific Become Powerhouse in Transforming Raw Minerals into Clean Energy Technologies"