This policy brief examines the role of development finance in unlocking investments in the critical minerals value chain. The relevance of the critical minerals value chain across the development finance ecosystem is growing. Development finance contributions to the critical minerals value chain aim to leverage 1) the sector’s opportunity to generate development benefits for official development assistance (ODA)-eligible countries; 2) its potential to contribute to local value addition and retention if development strategies are effectively designed; 3) the central role of critical minerals in industrial sectors, including the clean energy and digital transitions; and 4) the core role of development finance in supporting sustainable and responsible practices.
This policy brief builds an understanding of financing needs and constraints throughout the critical minerals value chain as well as the current landscape of development finance flows and private finance mobilised for the critical minerals value chain. It identifies further work that is needed to deepen the understanding of how development actors, including through blended finance mechanisms, can enhance development impact and additionality through the critical minerals value chain, including through applying the OECD DAC Blended Finance Guidance 2025.
