Uzbekistan Critical Minerals Processing Project Secures US$1 Billion Financing Support Framework from South Korea

en.Wedoany.com Reported - On September 14, the Asian Development Bank (ADB) announced that it is advancing cooperation on critical minerals processing and manufacturing with the Export-Import Bank of Korea, the Korea Trade Insurance Corporation, Uzbektechnometall JSC, and the Fund for Reconstruction and Development of Uzbekistan. ADB has signed a four-party memorandum of understanding with the Export-Import Bank of Korea, Uzbektechnometall JSC, and the Fund for Reconstruction and Development of Uzbekistan. The agreement was formally exchanged on September 15, with cooperation focused on combining Uzbekistan's mineral resources with South Korea's processing technology, manufacturing capacity, financing instruments, and market channels.

South Korea had previously entered ADB's "Critical Minerals to Manufacturing Financing Partnership Facility." The Export-Import Bank of Korea and the Korea Trade Insurance Corporation each signed US$500 million financing cooperation memoranda, and together the two institutions can provide up to US$1 billion in coordinated financing and risk-sharing support. This funding mechanism was not newly established in September; it was determined in May 2026 when ADB launched the financing platform in Samarkand. The new milestone this time is the implementation of the four-party cooperation framework in Uzbekistan.

ADB's critical minerals financing platform consists of a grant window and a catalytic financing window. The grant window is used for project feasibility studies, environmental and social assessments, technical assistance, and project preparation, while the catalytic financing window is used for project co-financing, risk sharing, and coordination among financing partners. The scope of support covers critical minerals including cobalt, copper, graphite, lithium, nickel, and rare earths, as well as smelting, refining, materials manufacturing, energy storage, electric vehicles, digital technology, and recycling facilities.

Uzbekistan has been listed by ADB as one of the first priority markets under this financing mechanism. ADB previously disclosed that it is advancing AI-driven critical metals production, recycling, and downstream manufacturing projects locally. Under this four-party agreement, Uzbektechnometall JSC participates as one of the industrial implementation entities, the Fund for Reconstruction and Development of Uzbekistan participates in project financing arrangements, the Export-Import Bank of Korea provides South Korean financial support, and ADB undertakes project development and financing coordination.

The government of Uzbekistan has formulated a 2026–2030 critical minerals industry plan, proposing to implement 120 projects with a total investment of approximately US$4.2 billion, with a focus on extending further from resource development such as tungsten and molybdenum to high-purity metals, powder metallurgy, alloys, and industrial products. After establishing this four-party cooperation framework with ADB and South Korean institutions, it can further cover project preparation, processing technology, manufacturing links, and financing arrangements.