Making Critical Minerals Bankable: Policy Tools to Unlock Investment

This white paper addresses the challenges associated with the investment in critical minerals, emphasizing the need for effective policy tools to enhance bankability. It outlines the increasing demand for critical minerals, which are essential for energy technologies and economic resilience, while highlighting the investment gap that exists due to various constraints. The paper identifies that the primary issue is not geological scarcity but the readiness for investment, as many projects face significant barriers such as high upfront costs, long development timelines, and policy uncertainty. It proposes a de-risking framework that aligns interventions with the specific characteristics of mineral markets, jurisdictional risks, and project stages. The framework categorizes six policy levers designed to address distinct constraints faced by projects, including upfront capital support, offtake anchors, revenue stabilization, risk mitigation, structural enablers, and tax mechanisms. By tailoring strategies to the unique needs of different minerals and contexts, the paper aims to facilitate the mobilization of private capital and enhance the resilience of critical mineral supply chains.