The United States and the Philippines are planning to set up a 4,000-acre industrial hub designed to shore up American supply chains for critical materials.

According to an April 16 release from the U.S. Department of State, the hub will be located in the Luzon Economic Corridor, on the Philippine island of Luzon. The new "economic security zone" — described as the first of its kind — will be used as the first node in a larger global industrial network, which will include a series of manufacturing sites, logistics corridors and financial partnerships across multiple continents.

"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," the State Department said.

The State Department said the economic zone will also provide the U.S. with better access to the Philippines workforce, as well as mineral endowments, energy resources, and a strategic geographic foothold for trade in the Indo-Pacific region. The Philippines has substantial reserves of nickel, copper, chromite and cobalt, which are key inputs for batteries, electronics, steel and other essential industrial products.