World Bank Aims to Quintuple Critical Minerals Financing

The World Bank has set an ambitious goal to quintuple its critical minerals financing over the next five years, with a target of $19 billion in financing over fiscal 2026-2030. This move is part of a broader effort to expand development financing and support domestic industries in developing economies.

The initiative involves collaboration with multilateral development banks and focuses on creating jobs, ensuring mineral-producing economies capture more value, and building local industries. The World Bank has identified 20 countries for potential partnerships on critical minerals development.

The World Bank's Metals and Minerals implementation plan envisages a significant increase in critical minerals financing, from $3.6 billion in fiscal 2021-2025 to $19 billion over the next five years. This expansion is part of the lender's efforts to support domestic industries and create jobs in developing economies.

The initiative will involve project de-risking, financing, and investment in supporting infrastructure, including deep-sea mining projects. The World Bank will also collaborate with other multilateral development banks to support domestic industries and create jobs.

## Why it matters The World Bank's move to increase critical minerals financing is significant, as critical minerals are gaining importance in global supply chains and industrial policy. The focus is on using financing and partnerships to help developing economies move beyond extracting raw materials towards building industries that generate more domestic value. This initiative has the potential to create jobs, stimulate economic growth, and ensure that mineral-producing economies capture a greater share of the value generated from their resources.

The World Bank's efforts to expand development financing and support domestic industries are also reflected in its launch of 52 new economic corridor projects last year, up from 23 a year earlier. Private capital has also increased, with $112 billion in funding. The World Bank's initiative to quintuple critical minerals financing is a significant step towards achieving its goals of promoting economic growth and development in developing economies.