THE critical minerals memorandum of understanding (MoU) between the US and the Philippines will prepare the industries involved to service global demand for materials needed for clean energy and technology, exporters said.
“The pact aims to pivot the Philippines from raw ore export to domestic processing of nickel, cobalt, and graphite, enhancing high-value exports and supply chain security,” the Philippine Exporters Confederation, Inc. (Philexport) said in a statement on Monday.
“By enhancing responsible mining and processing capabilities, the Philippines is prepared to meet global demand for materials critical to clean energy and technology,” it added.
The Philippines and the US signed an MoU to develop the domestic critical minerals and rare earths industry.
“This partnership is anticipated to attract investment, create jobs, and bolster the country’s role in the global high-tech supply chain,” Philexport said.
“Further, it strengthens ties for Filipino-led mining companies to access the US market and secure supply chains,” it added.
Former Trade Secretary Ramon M. Lopez said the pact will lead to “greater value-added critical mineral exports.”
These are “essential in new industries such as the electrified vehicle batteries and electronics,” he said in a Viber message.
He said the MoU could help “attract investments in resource-based export manufacturing activities that will create more jobs and sustainable community development.”
“Our country has been promoting more mineral processing activities as it has been included in the Strategic Investment Priorities Plan under the CREATE law and its predecessor, the Investment Priorities Plan of the Board of Investments,” he added.
According to the Department of Environment and Natural Resources, the MoU is set to evolve the Philippines beyond depending on the export of raw mineral ores and steer it towards domestic processing and value addition.
The US has also entered similar critical minerals agreements with Australia, Canada, Japan, South Korea, the UK, Malaysia, and Thailand. — Justine Irish D. Tabile
