The United Stated supply chain diversification plans may provide a window for the Philippines to explore opportunities in the critical mineral sector, US Undersecretary for Economic Growth, Energy and Environment Jose Fernandez said on Thursday.
“The Philippines is interested in exploring opportunities in the critical minerals sector and one of the things that we talked about is how we establish a closer working relationship with the mineral security partnership in order to allow potential projects in the Philippines,” Fernandez said in a virtual briefing organized by the Asia Pacific Media Hub.
The interest may span not only nickel projects, but also in cobalt and copper to receive investments and to receive the kinds of financing that the Philippines would require.
The Mineral Security Partnership, a collaboration of 13 countries and the EU, seeks to share information, investment and financing opportunities and recycling initiatives.
Fernandez underscored this competitive advantage and how the Philippines can be exposed to environmental tragedies if not guided by responsible practices.
“They can take that and then use it to their advantage by working to attract the kinds of investments that will bring jobs to the Philippines by respecting communities, cresting employment and not making countries choose between economic growth and environmental degradation,” he said.
While the US is not too keen on striking a deal for a critical minerals agreement with the Philippines, a similar agreement it forged with Japan, potential projects in the supply chain on green metals may open new doors of cooperation between the Philippines and the US.
The US, during a two-day working visit last month, announced how the Philippines can tap the $500-million International Technology, Security, and Innovation (ITSI) along with six other countries, that include Mexico, Panama, Puerto Rico and Vietnam, under the CHIPS and Science Act.
The partnership aims to help these countries strengthen their semiconductors industries particularly the Philippines, a leading player in global electronics and semiconductor industry.
The US took stock on the Philippines growing pre-eminence the production and global supply of semiconductors and how US companies have expressed intent to scale up investments in the sector.
Data from the Philippine Economic Zone Authority showed electronics and semiconductor sharing more than one-third of the total investments in the economic zones in 2023.