World Bank has a $19 billion gameplan to expand its critical minerals business in five years

World Bank President Ajay Banga on Friday set a target to quintuple the institution's critical minerals business over five years, with a new financing plan targeting $19 billion in the sector during fiscal 2026-2030, up from $3.6 billion in the previous five-year period, as the development lender looks to build local industries and retain more economic value in developing countries.

The World Bank has identified 20 countries for potential partnerships on critical minerals development, Banga said at a plenary session during the International Monetary Fund and World Bank annual meetings in Bangkok. The initiative will involve collaboration with other multilateral development banks (MDBs) to support domestic industries, create jobs and ensure mineral-producing economies capture a greater share of the value generated from their resources.

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"In critical minerals, we plan to quintuple our business in five years," Banga said. "This week, we launched our first country compacts with MDB partners—to build local industries and keep more jobs and value at home."

The expansion comes as critical minerals, including materials used in batteries, electric vehicles, renewable energy systems and advanced technologies, gain importance in global supply chains and industrial policy. For the World Bank, the focus is on using financing and partnerships to help developing economies move beyond extracting raw materials towards building industries that generate more domestic value.

World Bank eyes local value creation

The World Bank's Metals and Minerals implementation plan envisages $19 billion in critical minerals financing over fiscal 2026-2030, compared with $3.6 billion in fiscal 2021-2025. The five-year target marks a substantial expansion of the lender's intended engagement with the sector.

The push also aligns with calls from the United States, the World Bank's largest shareholder, for the institution to commit more resources to critical minerals. US Treasury Secretary Scott Bessent said earlier this week that the bank should play a bigger role in expanding mining and processing capacity through project de-risking, financing and investment in supporting infrastructure. He also cited deep-sea mining projects.

Banga did not refer to deep-sea mining in his remarks. The bank's metals plan, however, calls for a "precautionary approach" to the emerging sector, stating that any engagement and investments must be consistent with applicable bank policies.

The strategy extends beyond mineral extraction to the infrastructure needed to connect production centres with markets and support broader economic activity. Banga said the World Bank Group launched 52 new economic corridor projects last year, up from 23 a year earlier.

He cited the example of a corridor initially designed largely to transport minerals that was increasingly being used by farmers to move crops to markets, helping towns and cities develop along the route.

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Private capital tops $112 billion as World Bank scales up funding

The critical minerals push forms part of a broader effort to expand development financing by mobilising private investment alongside the World Bank Group's own resources.

Banga said the institution mobilised $112 billion in private capital in fiscal 2026, which ended on June 30, more than three times the approximately $35 billion mobilised in fiscal 2022, before he assumed the presidency. Including financing from its own balance sheet, the group's total financing exceeded $230 billion in fiscal 2026.

Private capital mobilisation nearly tripled in lower-middle-income countries and quadrupled in upper-middle-income countries, while more than doubling across Africa. However, mobilisation remained flat in low-income, fragile and conflict-affected economies, where commercial investment remains difficult to attract.

Banga said the World Bank Group was working to address barriers such as currency risks and limited access to finance through guarantees, equity investments and local-currency financing. It is also working with other multilateral development banks on common mechanisms to transfer investments to other investors, freeing up capital for additional development projects.

The broader investment agenda spans infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing, with the objective of raising productivity and creating jobs.

Banga warned that the world faces a projected shortfall of around 800 million jobs, arguing that employment opportunities for young people are critical to economic stability and development.

“A job is not a statistic. A job is dignity,” he said.

“The jobs gap is a projection. It does not have to be our future,” Banga added, calling for development initiatives to be implemented at greater scale and pace.