The U.S. Export-Import Bank, an independent federal agency charged with helping facilitate U.S. trade, will invest $100 billion to achieve President Trump’s plan to secure U.S. and allied supply chains for critical minerals, nuclear energy and liquefied natural gas (LNG).
Its new president, John Jovanovic (appointed in September), told the Financial times that the agency would fund these efforts to counter Western dependence on China and Russia, and that the first tranche of deals would include projects in Egypt, Pakistan and Europe, adding that the West has become overly reliant on supplies of critical materials that are “no longer fair.”
“We can’t do anything more than what we’re trying to do without these underlying critical raw materials supply chains being secure, stable and functional,” Jovanovic told the outlet, adding that the bank’s first deals would include a credit insurance guarantee for $4 billion of LNG delivered from Egypt by New York-based commodities group Hartree Partners, as well as a $1.25 billion loan for the Reko Diq mine that Barrick Mining is developing in Pakistan.
The bank currently has $100 billion to deploy of the $135 billion authorized by Congress, and has authorized $8.7 billion in new transactions in the 12 months through the end of September, which does not include a $4.7 billion loan that was reapproved in March to support an LNG project in Mozambique led by France’s TotalEnergies, the FOOT information.
Ex-Im Bank is “back in a big way and open for business,” Jovanovic said in his first interview since taking on his new role, adding that the focus would be on bringing “American energy molecules to every corner of the world.”
He also said the United States “can’t do anything more than what we’re trying to do without these underlying critical raw materials supply chains being secure, stable and functioning.”
Ex-Im was being “inundated” with requests for support for US LNG from Europe, Africa and Asia, and a series of multibillion-dollar LNG supply deals. It will be announced in the coming days, he said.
While some development banks have climate change-related mandates that prevent them from investing in fossil fuel projects, Ex-Im cannot exclude them. Jovanovic said American LNG would be a “stabilizing factor in providing energy security to the parts of the world that need it most.”
Ex-Im’s increased focus on supporting LNG exports and energy security represents a change of emphasis for the bank, which had been expanding support for renewable energy during former President Joe Biden’s administration.. Last year it supported $1.6 billion in green energy projects, a 74 percent increase compared to 2023. -FT