US Treasury Secretary Scott Bessent has called on the World Bank to redirect its green lending strategy toward critical minerals projects, marking a sharp pivot from climate-focused financing. Speaking at the IMF and World Bank spring meetings in Washington on April 16, Bessent emphasized the need for “high-quality, durable projects” in mining and processing to secure supplies of rare earths and other vital resources.
The push reflects a broader US strategy to counter China’s dominance in the sector, where Beijing controls over 90% of rare earths and other key minerals. This grip gives China significant leverage over Western economies in trade and technology, a vulnerability Bessent aims to address by urging the World Bank to prioritize deals that diversify supply chains and boost domestic value capture. He stressed the importance of supporting policies, projects, and infrastructure to unlock such opportunities.
Bessent also criticized the World Bank’s outgoing climate change action plan, calling its focus on climate financing “myopic” and ineffective at lifting people out of poverty. With the plan set to expire, he signaled a US intent to steer the institution toward economic growth and technological leadership through mineral security.
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As the US holds a dominant shareholding and effective veto power in both the IMF and World Bank, Bessent’s influence carries weight. He reiterated US commitment to a “strong, quota-based and adequately resourced” IMF, including securing Congressional approval for the IMF’s 16th quota review agreed in 2023 but still unimplemented.
The Treasury Secretary noted alignment between US priorities and the evolving direction of both institutions, suggesting a broader policy shift is underway. This comes as US mineral supply chains remain exposed to potential disruptions from China’s market control, a concern underscored by recent government assessments.
Bessent’s stance positions critical minerals as a cornerstone of economic and strategic policy, with the US leveraging its clout in multilateral finance to reshape global resource dynamics. The outcome of this push could redefine investment flows into mining and processing, with rare earths alone representing a multi-billion-dollar market critical to electrification and defense technologies.
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