The Case of the Export-Import Bank and the International Development Finance Corporation
In recent years, the United States government has adopted a geopolitical strategy of diversifying the sourcing of critical minerals in an effort to reduce dependence on China. This objective gained considerable steam under the Biden administration and continues to be a priority of the second Trump administration.
Two US government trade support agencies – the Export Import Bank (EXIM) and the International Development Finance Corporation (DFC) — are making sizeable loans, debt guarantees, and equity investments to aid extractive industries and the building of infrastructure required to bring minerals and petroleum to market. These two agencies have become the centerpiece of US efforts to increasingly extract resources such as copper, cobalt, graphite, coltan, tantalum and lithium needed for the transition to more climate friendly economies, the growth of the Artificial Intelligence industry, and for national defense.[i]
These two agencies are in a position to play a leadership role in working with private sector partner companies to ensure highest standards for community development. This will not only advance the US government’s development, economic growth, and foreign policy objectives, but will provide benefits to private sector firms through risk reduction and the enhancement of their brands.
IWA’s Extractive Industry and Human Development Center is committed to researching and publishing information about best practices by private and public sector actors in this domain to be used as models for approaches that while ensuring stable operations also promote human development.