Exim to Finance Foreign Miners

Export-Import Bank of the United States (EXIM) approved a program to subsidize foreign mining projects to better ensure American industry's access to raw materials.  

The Supply Chain Resiliency Initiative (SCRI) provides "targeted financing to develop projects that secure critical minerals and rare earth elements, essential for transformative technologies like battery storage and semiconductors, from trusted international partners." according to EXIM.

EXIM will provide financing for international projects with signed long-term “off-take” contracts with U.S. companies, providing these U.S. companies with access to critical minerals from partner countries.

The project must have signed off-take contracts that will result in the critical minerals and rare earth elements output being utilized in the United States, for products that are manufactured in the United States.

The financing amount will be determined by the percentage of the mine’s off-take that is with the United States. Additionally, the project cannot be controlled by the PRC. This would naturally rule out projects physically in the PRC, as well as projects owned by PRC entities. It would also rule out projects that rely on PRC technology or if a significant amount of the project’s customers are in the PRC.

“Through this creative new financing tool, EXIM will provide U.S. businesses access to critical resources, reduce reliance on PRC-controlled supply chains, and foster a stronger, more resilient domestic manufacturing base,” said EXIM President and Chair Reta Jo Lewis. 

SCRI financing will directly support agreements between U.S. manufacturers, such as automakers and battery producers, and global mineral suppliers in trusted partner countries. 

The initiative also "encourages onshoring of midstream processing and battery production, creating a ripple effect that strengthens U.S. economic security."

Congressional China Hawks cheered the move.  “. The initiative launched today by the U.S. Export-Import Bank will help build more resilient American supply chains and support companies that are not controlled by the CCP in the mining and processing of critical minerals,” said Rep. John Moolenaar, (R-MI) Chair of the House Select China Committee. 

The EXIM Board action follows  Non-Binding Resolution in Support of Critical Minerals and Rare Earth Elements Financings which amplifies EXIM’s current efforts to leverage its lending and underwriting tools to support critical minerals and rare earth elements projects.

There is more information about the Supply Chain Resiliency Initiative on EXIM’s website.