Can Philippines become critical minerals powerhouse with help from US, Japan?

A strategic report from the US-based Centre for a New American Security (CNAS) argues that the United States and Japan should partner to transform the Philippines into a major supplier of critical minerals, aiming to break China's dominance in the sector. The Philippines possesses substantial reserves of nickel and rare earths, but its supply chain is currently controlled by China. The CNAS report, authored by Lisa Curtis and Ryan Claffey, states that leveraging these resources is central to strengthening Washington's regional deterrence and reducing global dependence on Chinese-controlled supply chains for essential components in batteries, electronics, and defense systems.

However, analysts warn the ambitious plan faces significant hurdles within the Philippines itself. The CNAS report explicitly notes that a lack of commitment by Manila to introduce comprehensive reforms could hamper the goal. To attract the necessary Western and Japanese private sector investment for mining and processing, the Philippine government must tackle persistent issues of corruption and cut through bureaucratic red tape. The report concludes that while the opportunity is substantial, it will take considerable time and political will for the Philippines to shift away from its entrenched reliance on Chinese supply chains and establish itself as a viable alternative source for critical minerals.