Latin America’s mineral wealth positions it as a global commodity superpower

Latin America holds some of the world’s largest mineral deposits during a time when global leaders are scrambling to secure their future supply chains. As the race for critical minerals accelerates, the region has emerged as a geopolitical battleground for countries and companies seeking to gain foothold. Across almost 8 million square miles lie at least 10 key critical minerals, including lithium, copper, nickel and rare earths — essential components of advanced technology. As part of a broader supply-chain strategy, the United States has directed more than $1 billion of critical minerals projects across the region since 2025. A copper stronghold Copper remains the backbone of Latin America’s mining economy, anchored by Chile and Peru, which together account for roughly 40 percent of the global production. Chile’s Escondida Mine alone produces approximately 1 Mt/a (1.1 million stpy). A new wave of investment is moving forward, which could extend the region’s copper dominance. The country is home to 13 copper projects worth $14.8 billion that could add 500 kt/a (550,000 stpy) of capacity. These include Capstone Copper’s Santo Domingo, Codelco’s Rajo Inca, and Anglo American and Glencore’s Collahusai C20+ project. In an effort to continue technological advancement, Chile’s state-owned Codelco and Microsoft signed a memorandum of understanding to evaluate joint initiatives in artificial intelligence, advanced analytics, automation and digital security. Beyond Chile, new copper frontiers are emerging. In Argentina’s Vicuna district, companies including BHP and Lundin Mining are advancing projects such as Filo del Sol and Josemaria with planned investments of up to $800 million. In February in Peru, the environmental certification office SENACE approved an environmental study for Buenaventura, one of Peru’s largest mining firms, to proceed with its southern Trapiche copper project, which has an estimated investment of $3.4 billion. Vast lithium deposits Latin America also sits at the center of the global lithium market. The “Lithium Triangle,” consisting of Argentina, Chile and Bolivia contains more than half of the world’s lithium resources. These deposits are found in high-altitude salt flats, where lithium-rich brines are extracted from underground reservoirs and processed into battery-grade materials. Investment in the sector is accelerating rapidly. Rio Tinto’s Rincon project in Argentina recently secured $1.175 billion in financing as part of a $2.5 billion development expected to produce 60 kt/a (66,000 stpy) of lithium carbonate. In Chile, Rio Tinto is also advancing the Salares Altoandinos project, which is expected to produce up to 75 kt/a (83,000 stpy). Meanwhile, U.S.-backed startup EnergyX is planning a $1.1 billion lithium facility targeting 50 kt/a (55,000 stpy) annually by 2028. Beyond the traditional salt flat operations, Brazil’s Jequitinhonha Valley, often referred to as “Lithium Valley,” is emerging as a new hub for hard-rock lithium mining, attracting growing investment and diversifying the region’s production base. However, development across the Lithium Triangle remains uneven. Argentina has rapidly scaled up production due to investor-friendly policies, while Chile is increasing state control through partnerships led by Codelco. Bolivia, despite holding some of the world’s largest lithium resources, continues to face technical and regulatory challenges that have slowed production. Hub of rare earth elements Brazil sits at the heart of the region’s rare earth ambitions. The country holds the second largest rare earth reserves in the world, accounting for roughly 23.3 percent of global reserves. The Serra Verde project in Minaçu, Goiás holds the Pela Ema deposit, which has become the first large-scale operation outside Asia to produce high-value rare earth elements. In November 2025, Serra Verde was granted a $565 million loan by the U.S. International Development Finance Corp. to optimize and expand its rare earths mine in Brazil. In February 2026, the country signed a rare earth cooperation agreement with India aimed at expanding exploration, mining and processing capacity. Despite holding a large rare earth supply, Brazil only accounts for 0.02 percent of production, highlighting its potential for growth. Elsewhere in the region, countries are taking steps to expand their role in the global minerals market. In early March, Venezula’s state-owned mining company Minerven, signed a multimillion-dollar deal to sell as much as 1,000 kg of gold dore bars to commodities trader Trafigura for U.S. markets. The country’s National Assembly approved a mining law that would extend concessions from 20 to 30 years and allow greater foreign participation in the extraction of gold, diamonds and rare earth. However, The law is still subject to two debates before it can pass.

Latin America’s mineral wealth positions it as a global commodity superpower

Authored by: Carrie Smith

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