Critical Minerals Deal Benefit Goes Beyond Mining

Why It Matters

The agreement could diversify the Philippines’ economy, attract high‑tech investment and strengthen global supply‑chain resilience for critical sectors.

Key Takeaways

• US-Philippines deal targets mineral processing, not just extraction
• Investment push includes power, logistics, chemical sectors
• DTI aims to embed Philippines in semiconductor supply chain
• BOI will provide framework for downstream manufacturing projects
• Agreement supports workforce development for future high‑value industries

Pulse Analysis

The new critical minerals pact arrives at a time when global demand for rare earths and battery components is surging, driven by the transition to clean energy and the rapid expansion of semiconductor manufacturing. By aligning with the United States, the Philippines taps into a strategic partnership that promises technology transfer, financing mechanisms, and market access for its nascent processing facilities. This alignment also signals to other investors that the country is moving beyond a traditional mining export model toward integrated value‑added production.

Domestically, the deal dovetails with the Department of Trade and Industry’s broader three‑year investment agenda, which prioritizes data centers, semiconductors and advanced manufacturing. By encouraging investments in power generation, logistics and chemical handling, the agreement seeks to create an ecosystem where raw minerals are refined, components are fabricated, and finished products are exported. Such vertical integration can boost export revenues, reduce reliance on foreign processing, and generate higher‑skill jobs, addressing long‑standing workforce development goals.

However, realizing these ambitions will require robust regulatory frameworks, environmental safeguards, and sustained skill‑building programs. Competing regional hubs like Vietnam and Indonesia are also courting similar partnerships, so the Philippines must ensure transparent incentives and reliable infrastructure to stay competitive. If managed effectively, the agreement could reposition the nation as a pivotal node in the global supply chain for next‑generation technologies, delivering economic resilience and strategic relevance for years to come.

Critical minerals deal benefit goes beyond mining

By: Logan Kal‑El M. Zapanta · @inquirerdotnet · Philippine Daily Inquirer · 02:12 AM February 11, 2026

MANILA, Philippines – The Philippines’ newly signed critical minerals agreement with the United States is expected to generate benefits beyond mining. Prospective investments are seen extending to power generation, logistics and chemical handling.

In a statement on Tuesday, the Department of Trade and Industry (DTI) said the accord adopts a “whole‑of‑government” approach aimed at strengthening the country’s position as a hub for high‑value mineral processing.

“We are aiming at more than just being a supplier; we are positioning ourselves as a vital link in the global supply chains for semiconductors, defense and clean energy,” Trade Secretary Cristina Roque said.

“Through this agreement, we expect to attract substantial and diverse investments that will develop the local workforce and strengthen our standing in the industries of the future,” Roque added.

The DTI said its investment promotion arm, the Board of Investments (BOI), will help implement the agreement by providing a framework for investments in mineral processing, refining and downstream manufacturing.

Last year, the BOI initiated a push to refocus the country’s investment mix toward mining, data centers and semiconductors over the next three years. This was part of efforts to position the Philippines as a manufacturing and services hub.

The Philippines, through Environment Secretary Raphael Lotilla, signed the deal on Feb. 4 with Jacob Helberg, U.S. undersecretary of state for economic affairs.