The United States is committed to providing unwavering support to the Philippines in its pursuit of economic resilience and supply chain diversification. This assurance was given by US Undersecretary for Economic Growth, Energy, and Environment Jose Fernandez during his 10-day trip to Vietnam, the Philippines, and South Korea. The purpose of his visit was to discuss ways to strengthen economic cooperation in the Indo-Pacific region.
During an online briefing, Fernandez emphasized the importance of establishing a closer working relationship with the mineral security partnership in the Philippines. This partnership would not only focus on nickel but also explore potential projects in cobalt and copper. The Philippines, being the country with the second-largest reserves of nickel in the world after Indonesia, presents a significant opportunity for collaboration.
While a critical minerals agreement similar to the one the US has with Japan was not discussed, Fernandez highlighted the relevance of diversifying supply chains. He mentioned the mineral security partnership, which consists of 13 countries and the European Union, as a means to share information, investment opportunities, financing options, and promote sustainable practices in mineral extraction.
Fernandez acknowledged the Philippines’ eagerness to cooperate with the US in promoting clean and renewable energy to attract foreign investments. As one of the most vulnerable countries to climate change, the Philippines recognizes the importance of addressing climate change through renewable energy. Fernandez expressed the US’s satisfaction with the Marcos administration’s commitment to promoting clean energy in the country.
Furthermore, Fernandez discussed the electricity concerns raised by energy officials during his meeting. He acknowledged that these concerns not only impact foreign investment but also affect the willingness of critical mineral and semiconductor manufacturers to invest in the Philippines. As energy-intensive industries, these sectors require a stable and affordable energy supply. Fernandez noted that the Philippines has ample wind and solar resources, making renewable energy a viable option for the country’s energy needs.
The government of the Philippines is aware of the constraints posed by expensive electricity, and efforts are already underway to address this issue. Fernandez mentioned that the cost of electricity in the Philippines was twice as high as what he pays in New York City. However, he expressed optimism that this vulnerability can be turned into an opportunity by leveraging the country’s renewable energy potential.
In conclusion, the United States reaffirms its commitment to supporting the Philippines in achieving economic resilience and diversifying its supply chains. The collaboration between the two countries in the mineral sector and the promotion of clean and renewable energy presents significant opportunities for both nations. By working together, they can address challenges such as expensive electricity and climate change while fostering sustainable economic growth in the Philippines.
Source: The Manila Times
