IDB Group launches IDB LAC Minerals to strengthen critical mineral supply chains in Latin America and the Caribbean

The Inter-American Development Bank Group (IDB Group) has launched IDB LAC Minerals, a new initiative to develop more value-added and secure supply chains for critical minerals originating in Latin America and the Caribbean. The platform unites the region with global partners to promote responsible mineral development, strengthen value chains, and build diversified global supply chains.

Ilan Goldfajn, president of the IDB Group, said, “With IDB LAC Minerals, we want to help countries have better regulations and infrastructure, mobilise private investment, and strengthen institutions to have a strong pipeline of mineral projects and move up the value chain with refining and processing to enhance growth and create jobs.”

“The region brings resources and opportunity; the world brings technology, capital, and long-term contracts and attractive pricing. The IDB Group helps bridge the two,” he added.

Bridging regional resources with global expertise

IDB LAC Minerals aligns the interests of Latin America and the Caribbean, which provide scale in mineral resources and a growing commitment to value addition, with global partners who bring long-term demand, advanced technology, capital, and attractive financing. The IDB Group plays a central role by supporting policy and regulatory frameworks, catalysing private investment, and financing processing and value-chain infrastructure.

The initiative combines the IDB Group’s technical assistance and financing, including blended financial instruments, to support increased mineral extraction, refining, and processing activities within the region.

A focus on international support and collaboration

Several international partners announced their support for the initiative during the 2026 IDB Group Annual Meetings.

Japan committed $20 million through the Japan Resilience Initiative to support IDB LAC Minerals and related efforts to strengthen resilience and sustainable development in the region. Canada is exploring integrated support, including grant-funded technical assistance, potential blended financing, and credit-substitution guarantees.

Finland also intends to become a knowledge partner on sustainable mining and facilitate co-investment through financial instruments such as the Finland-LAC Blended Finance Climate Fund.

Similarly, Italy, through Cassa Depositi e Prestiti, will explore financial instruments to support investment-ready opportunities.

The launch received strong backing from IDB Group borrowing member countries and 13 non-borrowing members, including Germany, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Government representatives emphasised the importance of advancing shared objectives on responsible mineral development, value-chain integration, and long-term collaboration.

A response to rising global demand for critical minerals

IDB LAC Minerals responds to a global landscape where demand for minerals used in energy systems, advanced technologies, and artificial intelligence is surging. Latin America and the Caribbean account for approximately 30% of global mineral supply and about $180 billion in annual metals exports. However, most exports remain in raw material form.

Through this initiative, the IDB Group plans to work with countries across the region to expand refining and processing capabilities, create jobs, build industrial capacity, and strengthen supply chains, thereby moving up the value chain and enhancing economic growth.