The US Export-Import Bank is set to allocate $100 billion in funds to bolster President Trump’s initiative for securing supply chains in critical minerals, nuclear energy, and liquefied natural gas (LNG). This strategic move aims to diminish Western dependence on China and Russia, as outlined in a recent report by the Financial Times.
John Jovanovic, the new chair of the Export-Import Bank, emphasized the necessity of reliable and stable supply chains for critical raw materials. He stated, “We can’t do anything else that we’re trying to do without these underlying critical raw material supply chains being secure, stable and functioning.” Among the bank’s initial agreements is a significant credit insurance guarantee for $4 billion committed to LNG supplies from Egypt, facilitated by Hartree Partners, a New York-based commodities group. Additionally, the bank has approved a $1.25 billion loan for the Reko Diq mine project currently under development in Pakistan by Barrick Mining.
The Export-Import Bank is in a favorable financial position, with $100 billion ready for deployment from a total of $135 billion authorized by Congress. Over the past year, it has sanctioned $8.7 billion in new transactions, excluding a $4.7 billion loan reapproved in March for a Mozambique LNG project led by TotalEnergies, a French energy company.
In his first interview since taking office in September, Jovanovic declared, “Ex-Im Bank is back in a big way, and it’s open for business,” stressing the goal of distributing “US energy molecules to every corner of the globe.” He noted that the bank has received a flood of requests for support in exporting US LNG, particularly from Europe, Africa, and Asia. He anticipated that several multibillion-dollar LNG supply deals would be announced soon.
This renewed focus on LNG exports marks a significant shift in priorities for the bank, contrasting with its previous emphasis on promoting renewable energy during the administration of former President Joe Biden. Last year, the Export-Import Bank supported $1.6 billion in green energy projects, reflecting a 74 percent increase from 2023. Unlike some development banks that have mandates limiting investments in fossil fuel projects due to climate concerns, the Export-Import Bank is not bound to exclude such investments. Jovanovic reaffirmed that American LNG would serve as a stabilizing force in ensuring energy security for regions facing critical needs.
