The Philippines is about to receive a grant involving the processing of nickel ore through a partnership with an American firm that owns patents in the manufacture of batteries, according to the Department of Trade and Industry (DTI).
The DTI said the firm supplies the United States military and critical industries including hyper scale data centers, renewable energy projects, and long-haul trucking companies. However, it did not identify the US firm.
The agency noted that the Philippines can be “a vital partner” for critical minerals not only as exporters of ore minerals but as processors and producers of semi-finished and finished products.
Trade Secretary Alfredo E. Pascual said that while the Philippines is a top supplier of nickel ore, he said Manila is now keen on value addition for its mineral resources.
In a conference call with United States Commerce Secretary Gina Raimondo ahead of the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting held last September 2, Pascual pitched investments that would increase the country’s participation in value chains of high-value critical products.
The Trade chief thanked Raimondo for facilitating recent US Trade and Development Agency grants, which he said can be “replicated and expanded” through the IPEF.
Aside from the grant on processing nickel ore, the Trade department noted that the Philippines is set to receive a grant for a feasibility study on the country’s first off-shore wind farm.
“US Secretary of State Antony Blinken announced a grant for a feasibility study on the Philippines’ first off-shore wind farm and cited this as indicative of US’ vision for the IPEF,” the DTI said in a statement.
According to the World Bank, the Department of Energy (DOE) and the World Bank Group, with funding from the Energy Sector Management Assistance Program (ESMAP) launched the first-ever Philippines Offshore Wind Roadmap last April 20, which it said “will lay out the potential and concrete next steps for developing a robust offshore wind industry in the Philippines.”
Pascual also welcomed Raimondo’s IPEF Upskilling Initiative in which, the DTI said, 14 of the largest US digital companies such as Apple, American Towers, and Amazon will provide digital skills training to 7 million women and girls in less-developed IPEF participating countries, including the Philippines.
The Philippines also expressed interest in knowledge-sharing platforms aimed at developing micro, small and medium enterprises-inclined ecosystems through the utilization of carbon credit market and green financing instruments, said the DTI.
The DTI said Manila supports “green lanes” and other investment facilitation vehicles for existing and future grants dedicated to establishing cross-border private joint venture partnerships in the region.
During the ministerial meeting, the Philippines referred to discussions during the conference call and raised the absence of a market access component.
Given that legislation and policy measures restrict market access, “the US can consider IPEF as an avenue to provide preferential treatment or equitable access to trade for partner countries.”
The DTI suggested that such assistance may come in the form of grants, subsidies, or procurement opportunities that support or complement industry development initiatives of developing partner countries in the IPEF.
The DTI also noted that by pursuing these, partners are further incentivized toward working collectively to build and sustain robust investment environments that contribute to increased economic opportunities and competitiveness in the Indo-Pacific region.
The IPEF partners include India, US, Australia, Brunei, Fiji, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
Along with other framework partners, the Philippines endorsed the ministerial statements on Trade, Supply Chains, Clean Economy, and Fair Economy upon conclusion of the first official in-person Ministerial Meeting on September 9.