To curb China’s dominance in the sector, Manila has to cut red tape and fight corruption to draw US and Japanese investors
4-MIN READ4-MIN ListenSam BeltranPublished: 8:39pm, 8 Apr 2026Updated: 8:42pm, 8 Apr 2026The US and Japan have an ambition to transform the Philippines into a critical minerals powerhouse and cut their reliance on China as part of a broader economic partnership, but analysts warn that a lack of commitment by Manila to introduce comprehensive reforms and tackle corruption could hamper the goal.A report by the US-based think tank Centre for a New American Security (CNAS) said cooperation between the three countries was central to leveraging the Philippines’ vast potential as a source of critical minerals and rare earths to strengthen Washington’s regional deterrence.
“The United States and Japan are already among the Philippines’ top trading partners, but there are opportunities to enhance trade and investment ties in energy, infrastructure, telecommunications and critical minerals,” it said.
The report, written by CNAS Indo-Pacific Security Programme executive director Lisa Curtis and research assistant Ryan Claffey, said US Secretary of State Marco Rubio, Philippine Foreign Affairs Secretary Maria Theresa Lazaro and then Japanese foreign minister Iwaya Takeshi highlighted critical minerals as a key area for future cooperation in their meeting in Kuala Lumpur last year.
“The Philippines has substantial critical mineral reserves and could play a role in helping to reduce global dependence on China,” Curtis and Claffey wrote in a report released last month.
It will take time for the Philippines to shift its reliance on PRC supply chainsa Centre for a New American Security report“However, at present, the PRC dominates the Philippine nickel supply chain. It will take time for the Philippines to shift its reliance on PRC supply chains that access its nickel reserves and for Manila to attract Western private sector investment into extracting and processing its critical minerals.”
