Latin America's critical mineral reserves face financing gaps

Latin America is emerging as a critical global hub for the energy transition due to its vast reserves of minerals like copper, lithium, zinc, and nickel. The region holds 41% of the world's copper and the largest lithium reserves, located primarily in Chile, Argentina, and Bolivia.

However, analysts from Citigroup note that the primary obstacle to meeting global demand is not geological, but a lack of structured financial engineering. While the region possesses the necessary resources for electric vehicles and green energy, it lacks the specialized capital mechanisms required to accelerate exploration into large-scale production.

In Peru, the mining sector remains a focal point for economic development. The Ministry of Energy and Mines is working to connect regional agendas with national investment policies to manage a project portfolio valued at approximately US$64 billion. Additionally, the Piura region is looking to leverage 'Works for Taxes' (OxI) mechanisms, with a potential capacity of S/ 4,352 million, to fund infrastructure and climate prevention projects.