World Bank, Japan Partner to Strengthen Critical Mineral Supply Chains and Energy Security

The World Bank and Japan believe that targeted support can help countries overcome these obstacles and capture greater value from their natural resources.

The World Bank Group and the Government of Japan have unveiled two major initiatives designed to help developing countries strengthen critical mineral supply chains, improve energy security, and unlock new opportunities for economic growth and industrial development.

World Bank Group President Ajay Banga and Japan's Minister of Finance Satsuki Katayama formalised the partnership through the launch of the Resilient and Inclusive Supply-chain Enhancement Plus (RISE+) initiative and a new framework known as Dynamic Response for Invigorating Value Chains and Energy Security (DRIVE).

The two programmes build upon existing collaboration between Japan and the World Bank Group and are intended to help countries respond to growing global demand for critical minerals and increasing concerns about energy security amid geopolitical uncertainties.

Officials say the initiatives will support developing economies in attracting investment, creating jobs, strengthening industrial capacity, and building more resilient supply chains while helping ensure reliable access to critical resources and energy supplies. The announcement reflects growing international efforts to diversify supply chains, reduce vulnerabilities to global disruptions, and support sustainable economic development.

Growing Importance of Critical Minerals

The launch of RISE+ comes at a time when demand for critical minerals is accelerating worldwide.

Minerals such as lithium, cobalt, nickel, graphite, and rare earth elements are essential components of clean energy technologies, electric vehicles, battery storage systems, renewable energy infrastructure, and advanced manufacturing.

As countries pursue energy transitions and invest in low-carbon technologies, competition for access to these resources has intensified.

Many developing countries possess significant reserves of critical minerals but often struggle to convert natural resource wealth into broader economic development opportunities.

Challenges frequently include limited infrastructure, insufficient investment, weak industrial capacity, and barriers to accessing international markets.

The World Bank and Japan believe that targeted support can help countries overcome these obstacles and capture greater value from their natural resources.

RISE+ Expands Support for Critical Mineral Development

Under the new agreement, Japan will establish RISE+, a dedicated $20 million facility within Japan's single-donor trust funds.

The facility will complement the original Resilient and Inclusive Supply-Chain Enhancement (RISE) Partnership, which was launched during Japan's presidency of the Group of Seven (G7) in 2023.

RISE+ is intended to help developing countries translate growing demand for critical minerals into tangible public and private investments.

The initiative will support infrastructure development, mobilise private capital, and strengthen supply chains associated with critical mineral production and processing.

Particular emphasis will be placed on supporting projects aligned with national development strategies and Country Compacts.

Officials say the programme aims to ensure that resource-rich countries are able to benefit more fully from global demand while creating high-quality employment opportunities and fostering industrial development.

Turning Natural Resources Into Long-Term Prosperity

One of the central goals of RISE+ is to help countries move beyond simple extraction activities and develop stronger value chains around critical minerals.

Development experts have long argued that many resource-rich nations fail to capture the full economic benefits of their natural assets because processing, manufacturing, and higher-value activities often occur elsewhere.

By encouraging coordinated action between governments, investors, and industry, the initiative seeks to support broader economic transformation.

The programme will focus on improving investment environments, strengthening infrastructure, and promoting partnerships that encourage local economic development.

Officials believe this approach can help countries convert resource wealth into long-term prosperity rather than short-term commodity revenues.

The initiative is also expected to contribute to greater supply chain resilience by diversifying sources of critical minerals and reducing dependence on a limited number of suppliers.

New Framework Addresses Energy Security Challenges

Alongside RISE+, the World Bank Group and Japan launched DRIVE (Dynamic Response for Invigorating Value Chains and Energy Security), a framework focused on strengthening energy resilience in developing countries.

The initiative complements POWERR Asia (Partnership on Wide Energy and Resources Resilience Asia), Japan's existing $10 billion programme established to address fuel supply disruptions and energy security concerns in Asia.

POWERR Asia was developed in response to growing uncertainties in global energy markets, including disruptions linked to conflicts and geopolitical tensions in the Middle East.

Through DRIVE, the World Bank Group and Japanese institutions will work together to support countries facing energy supply challenges and economic vulnerability.

The programme is intended to help governments stabilise energy systems, improve resilience, and prepare for future disruptions.

Supporting Vulnerable Countries Through Public and Private Financing

The DRIVE framework will combine sovereign lending, technical assistance, policy advice, and private sector solutions.

The World Bank Group will collaborate with key Japanese institutions, including the Japan Bank for International Cooperation (JBIC) and the Japan International Cooperation Agency (JICA).

Together, they will provide support to countries affected by fuel supply shortages, energy market volatility, and supply chain disruptions.

The programme aims to strengthen energy infrastructure while promoting more efficient and diversified energy systems.

Officials believe that improved resilience will help countries better withstand future shocks and reduce the economic consequences of supply interruptions.

The initiative will also encourage investment in energy projects that support long-term economic growth and sustainable development.

Enhancing Supply Chain Management and Crisis Preparedness

A key component of DRIVE involves improving supply chain management and strengthening preparedness for future crises.

The partnership will draw upon the World Bank Group's global development expertise and Japan's extensive experience in energy security and industrial policy.

Participating countries will receive analytical support, technical assistance, and policy guidance aimed at improving planning and risk management.

The programme will also help vulnerable countries strengthen procurement systems and improve coordination across supply chains.

One important objective is enabling countries to pool purchasing power in order to secure timely access to critical supplies during periods of market disruption.

Officials say such cooperation can improve negotiating power, reduce costs, and enhance resilience against future shocks.

World Bank Highlights Development Opportunities

World Bank Group President Ajay Banga emphasised the transformative potential of the new initiatives.

"We appreciate Japan's leadership in enhancing critical minerals supply chain resilience through RISE+ and strengthening energy security through POWERR Asia," Banga said.

"These initiatives will help countries turn growing demand for clean energy and critical minerals into investment, jobs, and economic opportunity that improve lives across developing economies."

His comments reflect the World Bank's increasing focus on supporting countries as they navigate the global transition toward cleaner energy systems and more resilient supply chains.

The institution views critical minerals and energy security as key drivers of future economic development, particularly in emerging markets.

Japan Sees Benefits for Producers and Importers

Japan's Finance Minister Satsuki Katayama described the initiatives as mutually beneficial for both developing countries and importing nations.

"Critical mineral supply chain diversification through RISE+, and promotion of resilient regional supply chains and energy transition in the Asia-Pacific through DRIVE are both win-win policies," Katayama said.

She noted that the programmes would support the creation of quality jobs and sustainable economic growth in developing countries while also helping secure stable supplies of critical resources for importing nations, including Japan.

Katayama welcomed the opportunity to utilise the World Bank Group's expertise and policy tools to advance the initiatives.

Her remarks highlight the increasing importance that advanced economies place on securing reliable access to critical minerals and energy resources amid intensifying global competition.

Supporting the Global Energy Transition

The initiatives arrive during a period of profound transformation in global energy and industrial systems.

As countries accelerate efforts to reduce carbon emissions and expand renewable energy deployment, demand for critical minerals is projected to grow substantially over the coming decades.

At the same time, recent geopolitical events have underscored the vulnerability of global supply chains and the importance of energy security.

Many governments are seeking to diversify supply sources, strengthen resilience, and reduce dependence on concentrated markets.

The World Bank and Japan believe that supporting developing countries in these efforts can generate shared benefits while contributing to broader global development objectives.

Building More Resilient and Inclusive Economies

Ultimately, both RISE+ and DRIVE are designed to help developing countries build stronger, more resilient economies capable of benefiting from emerging global opportunities.

By supporting infrastructure development, mobilising investment, strengthening energy systems, and improving supply chain resilience, the programmes aim to create conditions for sustainable growth.

The initiatives also seek to ensure that developing nations play a more active role in global value chains rather than remaining solely suppliers of raw materials.

As demand for critical minerals and clean energy technologies continues to expand, the World Bank and Japan hope these new partnerships will help countries transform economic potential into tangible development outcomes.

For resource-rich and energy-vulnerable nations alike, the programmes offer a pathway toward greater resilience, stronger economic performance, and more inclusive growth in an increasingly interconnected global economy.