Treasury Secretary Scott Bessent Mandates World Bank Pivot Toward Critical Mineral Supply Chains

U.S. Treasury Secretary Scott Bessent demands the World Bank shift its focus from climate targets to critical mineral projects to counter Chinese dominance.

By: AXL Media

Published: Apr 17, 2026, 7:55 AM EDT

Source: Information for this report was sourced from Mining Weekly

The Strategic Reorientation of Development Lending

The United States government is exerting its influence as the primary shareholder in the world’s major development lenders to secure the minerals necessary for the next generation of technology. Treasury Secretary Scott Bessent utilized the International Monetary Fund (IMF) and World Bank spring meetings to demand a pivot toward "high-quality, durable projects" in the mining and processing sectors. This policy turn signals a move away from the traditional focus on broad climate goals, instead positioning multilateral finance as a tool for geopolitical competition and technological leadership. Bessent argued that developing secure supplies of rare earths is the most effective way to stimulate long-term economic growth.

Addressing the Strategic Vulnerability of Chinese Dominance

A central theme of Bessent's address was the need to counter the leverage held by Beijing over Western trade. Currently, China controls more than 90 percent of the global supply of rare earth elements and several other critical minerals, a monopoly that gives the country significant power over global supply chains. By urging the World Bank to unlock more deals in this sector, the U.S. aims to increase domestic value capture for developing nations while ensuring a diversified and resilient supply for the West. The Treasury Secretary stressed that the Bank must move quickly to support the specific infrastructure and policies required to facilitate these large-scale mineral extractions.

Criticism of the Climate Change Action Plan

In a direct challenge to the World Bank’s recent direction, Bessent welcomed the upcoming expiration of the institution’s current climate change action plan. He characterized the existing strategy as having a "myopic focus" on arbitrary climate financing targets that he believes fail to effectively lift people out of poverty. By reframing the bank's mission, Bessent intends to align development lending with practical industrial needs rather than environmental quotas. He stated that the two institutions are already moving in a direction more consistent with the U.S. vision of prioritizing tangible economic infrastructure over specialized climate projects.