PH, US plan 4,000-acre industrial hub in Luzon Economic Corridor

The Philippines and the United States are set to establish a 4,000-acre industrial hub in the Luzon Economic Corridor (LEC), designated as an Economic Security Zone aimed at strengthening supply chains for critical materials, the US State Department said Friday.

The site is expected to be the first of its kind, serving as a new model for AI-native investment hubs under the Pax Silica initiative, a US-led effort to build a network of allied supply chains for critical technologies and minerals.

The announcement was made by Under Secretary of State Jacob Helberg on X, who said the project would “secure inputs vital to American supply chains and transform how allies manufacture together.”

Helberg’s post included photos with Philippine officials: Finance Secretary Frederick Go, Ambassador to the United States Jose Manuel Romualdez, Bases Conversion and Development Authority (BCDA) president and Chief Executive Officer Joshua Bingcang, and Trade Undersecretary Ceferino Rodolfo.

Today we announced plans for a historic 4,000-acre Economic Security Zone in the Philippines—the first AI-native investment acceleration hub under Pax Silica. This purpose-built platform will secure inputs vital to American supply chains and transform how allies manufacture… pic.twitter.com/Hfhxbt5HKi

— Under Secretary of State Jacob S. Helberg (@UnderSecE) April 16, 2026

Based on the fact sheet uploaded by the Department of State, the Philippines and the US intend to identify appropriate frameworks for the long-term development of the zone, which facilitate “sovereign alignment” and “share upside” as it scales. Details on the timeline and investment size were not disclosed.

“It is expected to serve as a purpose-built platform for allied manufacturing — an investment acceleration hub where the specific industrial activities are shaped by market demand, host-country comparative advantages, and the evolving needs of the allied network,” it said.

“The Economic Security Zone is intended to fuse American expertise in institutions and legal regimes —   internationally enforceable contracts, transparent regulatory standards, and expert dispute resolution — with enhanced access to the Philippines’ outstanding workforce and talent, mineral endowments, energy resources, and strategic position at the crossroads of Indo-Pacific trade,” it added.

The fact sheet cited the Philippines’ significant reserves of nickel, copper, chromite, and cobalt, vital to global supply chains.

The LEC is part of a partnership among the Philippines, the United States, and Japan, announced during a trilateral summit in Washington, D.C. in April 2024 involving President Ferdinand Marcos Jr., then US President Joe Biden, and then Japanese Prime Minister Fumio Kishida.

“Situated within the Luzon Economic Corridor, the Zone can leverage the Philippines’ geographic centrality in the Indo-Pacific, its young and technically skilled workforce, and its deepening alliance with the United States,” the State Department said.—AOL, GMA News