World Bank targets fivefold expansion in critical minerals financing

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World Bank expands minerals financing

Highlights

World Bank aims to quintupling its critical minerals business to $19 billion for fiscal 2026–2030, up from $3.6 billion in fiscal 2021–2025.
First country compacts launched with multilateral partners seek to boost local critical minerals industries and job retention in producer nations.
In fiscal 2026, World Bank mobilized $112 billion in private capital and total combined financing reached $230 billion, more than triple fiscal 2022 levels.

Financing plan and project pipeline

As reported by Reuters, World Bank President Ajay Banga says the development lender has set a goal of quintupling its critical minerals business within five years, outlining the target in prepared remarks at a plenary session during the International Monetary Fund and World Bank annual meetings in Bangkok.

Banga says the bank has launched its first country compacts with multilateral development bank partners to help build local industries and retain more jobs and economic value in producer countries. The World Bank's Metals and Minerals implementation plan targets $19 billion in critical minerals financing over fiscal 2026 to 2030, up from $3.6 billion in fiscal 2021 to 2025.

Policy backdrop and broader funding growth

Critical minerals development remains an area where the U.S., the World Bank's largest shareholder, is calling for the bank to devote more financing resources. U.S. Treasury Secretary Scott Bessent says earlier this week that he wants the bank to play a larger role in enabling mining and processing capacity through project de-risking, finance and investment in supporting infrastructure, including deep-sea mining projects.

Banga does not mention deep-sea mining in his remarks, but the bank's metals plan says it will take a precautionary approach to the sector and that any engagement or investment must remain consistent with applicable bank policies.

Banga also reviews broader financing growth in the World Bank's 2026 fiscal year, which ended on June 30. He says the institution mobilizes $112 billion in private capital, more than triple the level recorded in fiscal 2022, and that combined financing from private capital and the bank's own balance sheet reaches $230 billion for fiscal 2026.

In our earlier article on China’s rare earth export licensing for Europe, we explained that Beijing signaled it would keep approving shipments even if the temporary U.S.-China trade truce is not extended beyond January. We also noted that the EU and China were continuing talks aimed at reducing trade frictions while keeping critical-material supply flows stable for European industry.

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