South Korea and ADB Expand Central Asia Critical Minerals Push

Two days before South Korea hosts its first summit with all five Central Asian countries on September 16, Seoul held a series of talks with the Asian Development Bank over how Korean technology and financing could be used in critical-mineral projects in the region. On September 14, South Korean President Lee Jae Myung met ADB President Masato Kanda in Seoul, where they agreed to work more closely on critical-mineral supply chains, artificial intelligence, and energy. Kanda later held separate talks with South Korean Finance Minister Koo Yun-cheol. More specifically, the two discussed combining ADB financing with the technology and expertise of South Korean companies for projects in Central Asia. The talks build on a financing mechanism that was already in place. ADB formally launched its Critical Minerals-to-Manufacturing Financing Partnership Facility at its annual meeting in Samarkand in May. It is designed to support critical-mineral supply chains across ADB’s developing member countries in Asia and the Pacific. The facility has two components. The first is a grant window that pays for early-stage work, including feasibility studies, environmental and social assessments, and technical assistance. At its launch, ADB announced a $20 million contribution from Japan and $1.6 million from the United Kingdom to this part of the facility. The second is designed to mobilize additional capital and share risk. This is where South Korea comes in. Korea Eximbank and Korea Trade Insurance Corporation (K-SURE) each signed a memorandum covering up to $500 million in potential financing, giving the two South Korean institutions a combined potential cofinancing commitment of up to $1 billion. The facility is intended to support projects across the value chain, from mining and processing to manufacturing and recycling. ADB is already working on critical-minerals initiatives in Central Asia. In Kazakhstan, the bank is supporting the development of a critical-minerals strategy, while in Uzbekistan it is working on AI-driven critical-metals production and circular approaches to raw materials. At an ADB seminar launching the facility during the bank’s annual meeting in Samarkand, Kanda said the aim was to ensure mineral-producing countries benefited from more than extraction. “Asia and the Pacific should be more than a source of raw materials. The region should also capture the jobs, technology, and value these minerals provide,” Kanda said. Central Asia's Critical Minerals Play Kazakhstan is already a major producer of uranium and chromite and also produces or processes titanium, beryllium, tantalum, zinc, and other strategic materials. In July, Kazakhstan and South Korea began establishing a joint research center for rare and rare-earth metals at Satbayev University in Almaty. The center is expected to work on processing technologies and specialist training. Ahead of the summit, Kazakhstan said it wanted to expand cooperation with South Korea beyond the already established automotive industry into AI, advanced technologies, and critical minerals. Astana is interested in deeper processing of raw materials and producing higher-value-added goods. Uzbekistan is moving in the same direction. The country has a $4.2 billion critical-minerals program for 2026–2030 comprising 120 projects. Tashkent plans to increase industry...