S&P Global is urging the Philippines to adopt a cohesive, long-term policy framework spanning 10 to 20 years to fully leverage its mineral wealth, which is vital to the global clean energy transition, an executive said.
The irreversible long-term demand driven by the global energy transition is expected to lead to supply deficits by 2035, calling for greater production from mineral-rich countries like the Philippines, S&P Global warned.
“Once the direction is chosen, the Philippines can fully leverage its mineral wealth in a world hungry for critical minerals,” S&P Global Commodity Insights associate research analyst Mary Nyah Alcantara said, underscoring the nation’s potential to play a pivotal role in the global clean energy supply chain.
The Philippines is a crucial link in the global minerals supply chain. S&P Global data show it ranks as the second-largest nickel producer in 2024 and holds the third-largest nickel reserves worldwide.
While Indonesia continues to dominate mined nickel supply growth, the Philippines remains the second-largest contributor to global output and is expected to stay resilient despite market fluctuations.
Alcantara noted that Philippine production remains stable even at the forecast $15,500 per metric ton nickel price this year.
The country also has a competitive edge in copper, cobalt, and gold, positioning it well in the transition toward electrification and renewable energy.
Demand for nickel, cobalt and copper is projected to surge as plug-in electric vehicle (PEV) sales are forecast to triple between 2024 and 2035, led by growth in China and Europe. China is expected to account for 53 percent of PEV sales in the first half of 2025.
Alcantara said, however, the Philippines should decide whether to continue focusing on upstream mining or to expand into downstream integration through refining and processing.
“The Philippines excels in upstream mining but lacks refining,” she said, noting the country’s heavy reliance on ore exports.
She said that with long-term demand surging and vast mineral wealth in place, the Philippines should “act decisively to transform its geological advantage into sustainable industrial growth.”
