The Philippines is moving up the minerals value chain. A new agreement with Washington signals a clear shift away from exporting raw ore. Manila now wants to process critical minerals at home and retain more economic value.
This matters because these materials power electric vehicles, renewable energy systems, and advanced electronics. The deal places the country closer to the industries shaping the global tech economy.
On Feb. 4, Environment Secretary Raphael Lotilla signed a memorandum of understanding with U.S. Undersecretary of State for Economic Affairs Jacob Helberg in Washington, D.C. The signing occurred on the sidelines of the 2026 Critical Minerals Ministerial, which gathered officials from 54 countries and the European Commission.
According to the Department of Environment and Natural Resources (DENR), the pact supports domestic processing, value addition, and deeper integration into global supply chains. Lotilla said the move would cut raw ore exports, create high-skilled jobs, and keep more mining benefits within the Philippines.
Accordingly, the Philippines now joins Australia, Canada, Japan, South Korea, the United Kingdom, Malaysia, and Thailand in similar U.S. critical minerals arrangements. U.S. officials said the partnership strengthens global supply chains and supports American economic interests and jobs.
Philippine mining groups welcomed the deal as an opportunity to attract investment and encourage technology transfer while reinforcing environmental and governance standards.
Furthermore, the accord connects Manila to Washington’s broader “Pax Silica” initiative, launched with several allies to secure materials vital for AI, automobiles, and consumer electronics. U.S. Secretary of State Marco Rubio has stressed that critical minerals underpin infrastructure, industry, and national defense. He also proposed a preferential trade zone for critical minerals with enforceable price floors to prevent market disruptions and stabilize global supply.
At the same time, Lotilla emphasized that domestic processing must follow responsible mining practices. He said the government would uphold environmental standards and protect local communities while pursuing industrial upgrading and technological capacity.
