Latin America holds strategic advantage in global critical mineral supply

Latin America holds a strategic position in the global energy transition due to its vast reserves of critical minerals, including lithium, copper, and rare earth elements. According to an analysis by CAF, the region contains nearly half of the world's lithium resources and over 30% of copper reserves. The lithium triangle, comprising Argentina, Bolivia, and Chile, is central to this potential.

However, global supply chains are currently highly concentrated. China processes approximately 70% of the world's lithium, 78% of cobalt, and 91% of rare earth elements. Experts at the IV Latin American Green Economy Forum in São Paulo noted that while geopolitical instability and high oil prices create opportunities for the region, a significant challenge remains: moving beyond raw material extraction.

To capture greater economic value, Latin American nations must overcome technological, financial, and institutional gaps to develop domestic processing, refining, and manufacturing capabilities. Strengthening regional cooperation and securing access to technology are seen as essential steps for ensuring energy security and economic benefit.