IDB Launches ‘LAC Minerals’ Initiative to Strengthen Critical Mineral Supply Chains

The platform seeks to connect mineral-rich countries in the region with international partners to develop responsible mining practices, stronger industrial value chains, and resilient global supply networks.

The Inter-American Development Bank Group (IDB Group) has launched IDB LAC Minerals, a new regional initiative aimed at building secure, value-added supply chains for critical minerals originating in Latin America and the Caribbean, positioning the region as a key player in the global energy and technology transition.

The platform seeks to connect mineral-rich countries in the region with international partners to develop responsible mining practices, stronger industrial value chains, and resilient global supply networks.

A Strategic Platform for Critical Minerals

IDB LAC Minerals is designed to align the interests of Latin American and Caribbean nations with global partners seeking reliable sources of minerals essential for clean energy systems, advanced technologies, and artificial intelligence.

The initiative will foster cooperation between governments, financial institutions, and private investors to accelerate responsible mineral development and create stronger regional value chains.

Under the initiative:

• Latin America and the Caribbean contribute abundant mineral resources and growing industrial capacity

• Global partners bring technology, capital, financing and long-term demand

• The IDB Group provides policy support, financing mechanisms and investment facilitation

Together, the collaboration aims to create diversified and resilient mineral supply chains that benefit both producing countries and global markets.

Moving Beyond Raw Material Exports

Latin America and the Caribbean already play a critical role in the global minerals market.

The region accounts for approximately:

• 30 percent of the world's mineral supply• Around $180 billion in annual metals exports

Despite this dominance, most exports currently consist of raw materials rather than processed or refined products, limiting economic benefits for local economies.

Through IDB LAC Minerals, the IDB Group aims to help countries move up the value chain by expanding refining, processing, and industrial capacity, generating new jobs and long-term economic growth.

Financing, Policy Support and Investment

The initiative combines the IDB Group's technical expertise, financial resources and blended finance instruments to support the entire mineral value chain.

Key areas of support include:

• Developing strong regulatory and policy frameworks

• Financing mineral extraction, refining and processing projects

• Supporting infrastructure and supply chain development

• Mobilizing private-sector investment

"Through IDB LAC Minerals, we want to help countries strengthen regulations and infrastructure, mobilize private investment, and build a strong pipeline of mineral projects while moving up the value chain with refining and processing," said Ilan Goldfajn, President of the IDB Group.

"The region brings resources and opportunity; the world brings technology, capital, and long-term contracts. The IDB Group helps bridge the two."

Strong International Support

Several international partners announced support for the initiative during the 2026 IDB Group Annual Meetings, highlighting growing global interest in strengthening mineral supply chains.

Key commitments include:

• Japan pledged $20 million through the Japan Resilience Initiative to support sustainable mineral development and regional resilience.

• Canada is exploring integrated support through technical assistance, blended financing, and credit guarantees.

• Finland plans to act as a knowledge partner on sustainable mining and explore co-investment opportunities through instruments such as the Finland-LAC Blended Finance Climate Fund.

• Italy, through Cassa Depositi e Prestiti, will explore financing tools to support investment-ready mining and processing projects.

Broad Global Backing

The initiative has also received strong backing from IDB Group borrowing countries and 13 non-borrowing members, including:

• Germany• Spain• Sweden• Switzerland• United Kingdom• United States

Government representatives emphasized the importance of international cooperation to promote responsible mineral development, sustainable supply chains, and long-term economic partnerships.

Responding to a New Global Minerals Landscape

The launch of IDB LAC Minerals reflects rapidly rising global demand for minerals used in renewable energy technologies, electric vehicles, semiconductors, and artificial intelligence systems.

As countries seek to diversify supply chains and reduce dependency on limited sources, Latin America and the Caribbean are emerging as a central hub in the global critical minerals economy.

By strengthening refining capacity, industrial infrastructure, and responsible mining standards, the initiative aims to help the region capture more economic value from its natural resources while supporting global energy transition goals.