Another American firm is in discussion with the Philippines for potential huge investments in downstream nickel processing in the country, according to Trade and Industry Secretary Alfredo E. Pascual. Pascual, who accompanied President Ferdinand R. Marcos Jr.’s official working visit to the US, said another American firm is interested in nickel processing, but did not disclose the identity of the potential investor. The first American firm that expressed interest would be in electric battery manufacturing with a local mining partner, which has received a grant from USAID. When asked if the project involves huge investments, Pascual said “All mineral processing investments are big.” The nickel processing interest in the country, he said, is not just limited to the US, but also in partnership with EU, China and Japanese firms. Pascual shared that there are mining interests and are pursuing discussion with local partners, but these are private ventures and doing it on their own volition with the government just providing the enabling environment. One potential enabling environment, Pascual said is the DTI proposal for a Critical Metals Agreement (CMA). While the CMA featured in their discussions during the President’s visit, Pascual said, the form and nature of the agreement has not yet been firmed up. DTI Undersecretary and Board of Investments Managing Head Ceferino S. Rodolfo also added that there are openings for future enhanced economic engagements as stated under the Joint Statement of the leaders of both countries. He said that Pascual has emphasized during a meeting between the Cabinets of the two governments for sectoral agreements on critical sectors that could yield high value add and employment opportunities for both countries. Pascual added this could be possible under the proposed CMA and a free trade agreement focusing on goods and commodities that will benefit both economies if tariffs are lowered.  At present, the US has forged a CMA deal with Japan. Among the sectors, the DTI is pushing for nickel processing as the Philippines supplies raw nickel ore, which when further processed is a critical component in the manufacture of electric vehicle batteries and supports the government goal to become a production hub for electric vehicles. Another policy environment that DTI is currently weighing is on the exports of raw nickel ore. The BOI is still studying a policy, similar to the Indonesian approach, which is to ban the export of raw ore or to impose tax on raw ore exports to encourage companies to undertake local processing of the raw material. Pascual noted that Indonesia’s policy resulted in increase in revenues from nickel by 10 to 20 times. But, he said, the government would just like to encourage the processing of nickel in the country and enable the Philippines to participate in the global EV ecosystem. The DTI is also pushing for the inclusion of electric motorcycles for zero import duty granted under Executive Order 12, which is facing review a year after its implementation, as another incentive for companies to invest in EV production in the country.