Philippines, US sign deal on critical energy transition minerals

MANILA, Philippines – The Philippine government signed a memorandum of understanding with the United States on Wednesday, February 4, to “boost cooperation on critical minerals” and “support” the Philippines’ critical minerals and rare earth sector.

The deal aims to advance the sector away from exporting raw mineral ore toward domestic processing, according to a release from the Department of Environment and Natural Resources on Friday, February 6.

Environment Secretary Raphael P.M. Lotilla and US Undersecretary of State for Economic Affairs Jacob Helberg signed the agreement on the sidelines of the 2026 Critical Minerals Ministerial in Washington.

“Through this partnership, we are building a Filipino-led industry that processes our own resources, creates high-skilled jobs, and strengthens our position in the global high-tech supply chain,” Lotilla said.

The Philippines is the second largest producer of nickel in the world, a far second from Indonesia. The country mainly exports the raw nickel ore.

Critical minerals are needed for global shift to renewable energy. These minerals are used for solar panels, wind turbines, electric vehicle batteries.

Aside from the Philippines, the US signed bilateral critical minerals frameworks with 10 other countries in the same day, including Argentina, the Cook Islands, Ecuador, Guinea, Morocco, Paraguay, Peru, the United Arab Emirates, the United Kingdom, and Uzbekistan.

“Today, this market is highly concentrated, leaving it a tool of political coercion and supply chain disruption, putting our core interests at risk,” the US Department of State said in a release on February 4.

“We will build new sources of supply, foster secure and reliable transport and logistics networks, and transform the global market into one that is secure, diversified, and resilient, end-to-end.” – Rappler.com