How will South Korea's USD 1 billion pledge affect Asia's critical minerals sector?

South Korea Commits USD 1 Billion to Critical Minerals

The Republic of Korea has pledged up to USD 1 billion in cofinancing and risk-sharing with the Asian Development Bank (ADB) to support critical minerals processing and manufacturing across Asia and the Pacific.

This commitment, channelled through the Export–Import Bank of Korea and the Korea Trade Insurance Corporation, falls under the ADB’s Critical Minerals-to-Manufacturing Financing Partnership Facility.

The announcement followed a meeting on 14 September 2026 between ADB President Masato Kanda and Republic of Korea President Lee Jae Myung in Seoul, where discussions focused on strengthening cooperation across energy security, critical minerals, and artificial intelligence (AI), leveraging Korean technology and capital for regional investments.

Mr. Kanda also engaged with Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol to finalise the details of South Korea's financial support for joint initiatives.

Uzbekistan to Benefit from Mineral Processing MOU

A specific application of this enhanced cooperation is a four-party Memorandum of Understanding (MOU) aimed at developing critical minerals processing and manufacturing within Uzbekistan.

The agreement, concluded during President Kanda's visit and scheduled for formal exchange on 15 September 2026, involves the ADB, the Export–Import Bank of Korea, the Uzbekistan Technological Metals Complex JSC, and the Uzbekistan Fund for Reconstruction and Development.

This MOU seeks to integrate Uzbekistan’s mineral resources with South Korean processing technology, manufacturing expertise, financing, and market access. The initiative forms part of a broader strategy to establish resilient supply chains for critical minerals, which are essential for various advanced industries.

Expanded Cooperation in AI and Energy Infrastructure

Beyond critical minerals, South Korea also committed USD 20 million to support the ADB’s wider AI initiatives. This funding is intended to bolster digital infrastructure, facilitate the development of practical AI applications, and enhance training programmes across developing member countries.

Discussions between President Kanda and President Lee Jae Myung also explored potential collaboration in energy and power grids, with a particular focus on modernising power systems in developing nations.

Following a review of the ADB’s Energy Policy last year, the bank is now able to engage with interested developing member countries on potential nuclear power development, an area where South Korea possesses world-class expertise.

Implications for Asian Industrial and Digital Development

The USD 1 billion commitment for critical minerals processing and manufacturing, coupled with the specific MOU for Uzbekistan, shows South Korea's increasing role in shaping Asia's industrial landscape.

Decision-makers in the critical minerals sector should observe how the ADB’s Critical Minerals-to-Manufacturing Financing Partnership Facility allocates this capital, particularly for projects that integrate resource-rich nations with advanced processing capabilities.

The formal exchange of the Uzbekistan MOU on 15 September 2026 marks a concrete step towards establishing new supply chain models.

Separately, the USD 20 million for ADB's AI initiatives and discussions on nuclear power signal broader technological and energy infrastructure integration, pointing to future opportunities for companies involved in digital infrastructure, AI development, and advanced energy solutions across the region.