The Philippines has entered into an agreement with the United States with the goal of drastically improving the country’s critical minerals and rare earths sector. This move is part of broader efforts to move away from exporting raw mineral ores and toward higher-value domestic processing and manufacturing.
The Department of Environment and Natural Resources (DENR) signed a Memorandum of Understanding (MOU) with the U.S. government to support domestic processing and value addition. This allows the Philippines to gain more value with deeper participation in global supply chains tied to clean energy and advanced manufacturing.
The MOU was signed by DENR Secretary Raphael P.M. Lotilla and U.S. Under Secretary of State for Economic Affairs Jacob Helberg. The agreement seeks to advance Philippine economic policy toward higher-value industrial activity and reduce reliance on raw mineral exports.
“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. We will be able to keep more of the economic benefits of mining within the country,” Lotilla said.
Critical minerals and rare earth elements are essential for advancing technologies such as electric vehicles, renewable energy devices, electronics, and advanced manufacturing. The DENR also noted that several countries, such as Australia, Canada, Japan, South Korea, the United Kingdom, Malaysia, and Thailand, have entered into similar critical minerals agreements with the United States.
“By advancing critical minerals processing at home, the Philippines takes a significant step toward building a resilient, innovation-driven economy and securing its place in the future of global industry,” Lotilla said. “More importantly, this step forms part of our overall commitment to responsible mining by upholding environmental standards and protecting the well-being of local communities.”
The signing took place on February 4, 2026, at the sidelines of the 2026 Critical Minerals Ministerial, hosted by the U.S. Department of State in Washington, D.C. The ministerial gathered ministers and senior officials from 54 countries and the European Commission.
As global demand for clean energy and advanced technologies grows, how might this Philippines and U.S. agreement shape the country’s role in future critical minerals and manufacturing supply chains?
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