Finance Minister Satsuki Katayama said Monday Japan will disburse $20 million to the World Bank to spur investments in developing countries to strengthen supply chains of critical minerals including rare earths.
“We hope that the World Bank actively identifies investment projects, particularly in the midstream and downstream sectors in the supply chain of critical minerals,” Katayama said at a signing ceremony with World Bank President Ajay Banga in Tokyo over Japan’s new financial contribution.
Katayama said that Japan believes that diversifying the supply chains of minerals essential for making solar panels, batteries and other clean energy products will create local jobs while providing importing countries with stable supplies of these resources.
Securing critical minerals has become increasingly crucial for resource-poor Japan with China bolstering export controls of the materials.
“The idea is not just to extract minerals. It is to help countries build policies, build institutions, attract private investment…and connect mineral wealth to processing, to infrastructure, but most importantly, to jobs,” Banga said, referring to the new cooperation with Japan.
Katayama and Banga also agreed to boost coordination to complement Japan’s $10 billion framework aimed at addressing fuel supply shortages and supply chain disruptions in Asia stemming from the conflict in the Middle East.
© KYODO
