Latin America has them. The world wants them. But regional governments and their citizens are two decades about the costs and benefits of more development.
The increasing competition between the global powers to secure the future of supply chains for manufacturing and technology is to convert a unique group of critical minerals in Latin America and rare Earth elements into a decisive new battlefield.
“Especially in the form of copper and lehium, which is expected to rise in demand, in addition to more designated minerals such as Nebium, used in space and manufacturing from air space and manufacturing from space and manufacturing from air space and manufacturing,” the region has a huge wealth of minerals “, especially in the form of Copper and lithium, which is expected to rise in the demand;
The global demand for lithium with a 40 -year -old worker may increase over the next fifteen years, the International Energy Agency projects (IEA), and according to the intelligence of the S & P Global Market, it may exceed the current global production by 2028. IEA offers the demand for copper by 40 % over the next five years, as current production exceeded by 2030.
The demand for lithium seems more vulnerable to the variable dynamics in the green energy market, especially since the Trump administration is graduating from the Paris Agreement and has reduced the goals of carbon emissions. But it is not possible to say the same thing about copper, which “almost certainly remains high in demand because it will be important for applications ranging from green energy and electric cars to the wires needed to operate the artificial intelligence data centers.”
Latin America has about 60 % of the world’s lithium reserves and another 40 % of copper reserves, according to IEA data, which is home to seven of the 10 most productive mines in the world. Moreover, most of the world’s high -mineral countries in the region, where Bolivia, Argentina, Chile, Lithium, Chile and Peru, lead to copper.
Diversify supply chains
With the intensification of competition between China and the United States, especially in technology, and while global supplies of minerals became more tense by increasing demand, the diversification of both metal supply chains has become geopolitical priority and the highest priority for companies.
According to United Nations Research, China has more than 40 % of the universal son -in -law and refining capacity of copper, lehium, rare land and cobalt. In Latin America, China made 65 % of Chilean metal exports in 2021, which reaches about 6 % of GDP in Chile, according to the World Bank.
Melissa Sanderson, a member of the American Rise Erez board, says, whether by increasing or restricting major exports or by implementing other restrictions on the main materials, “either by increasing or restricting major exports or by implementing other restrictions on the main materials.”
Canadian Prime Minister Justin Trudeau recently said that one of the main reasons for the main reason that US President Donald Trump has expressed his desire to include Canada is the width in the country of minerals and minerals. “This is a strategic weakness of the United States against China, as for many of the Western world, just gave China’s control of critical minerals around the world,” he said.
In one of the first actions of his second term, Trump announced the state of national energy emergency and promised to separate it from the supply chain in the middle of the Chinese road. This was followed by a 10 % global tariff on Chinese goods, which Beijing responded – between other things – curbing exports of minerals that you use in their supply chain.
The intense risks of the trade war push companies similarly to separate companies from the current metal supply chains.
“Trump’s early references include supply chains on the edge of the abyss, especially in industries that depend on manufacturing and critical materials,” says Tim Hinifeld, a rural manager in Al -Arisha in North America. “Reflection on the companies where the materials are issued, as many are looking for insurance of alternative suppliers or transferring to areas with less geopolitical risk.”
Laura Dow, business manager at CPG Sourcing, who specializes in material sources and products with a focus on China, says falsification of the most elastic metal supply chains will come at a cost. “Companies that give priority to the balanced and future supply chain will be better in a long -term success.”
Iggy Domagalski, CEO of Canadian Industrial Products and Services Wajax, explained, “This dynamic has pushed the United States and Canada to search for stronger partnerships in Latin America to diversify and secure its critical metal supplies,” explained by Iggy Domagalski, CEO of Canadian industrial products and services.
Achieving full capabilities
While Latin America holds some of the world’s largest critical mineral reserves and rare Earth elements, many of this are still not exploited. More development can prove a major solution to increasingly tense global supply chains.
“The region, with a few exceptions, has not yet been able to achieve its full capabilities in the value chains of critical minerals,” a joint authorized research article is noticed by economists and JP Mortan Bank, “and therefore, in those of clean components and digital components.”
However, the development of this sector may prove a difficult game, given the aspirations of the domestic and international geopolitics and the growing environmental interests. Moreover, the historical gap between the production of raw materials and directing in the region continues to reduce local interest in developing resource networks.
Over the past two decades, China has created itself as a leading player in the mid -road business in Latin America for copper and lehium, and the prosperity of the gap left by the lack of investment from the governments of the region, says Isabelle, the first analyst in Globalta, and the debt for mining technology.
“This weakens the geopolitical impact of Latin America, which limits the region to export raw minerals to Chinese investors and other foreign investors,” it warned.
This gap is attributed to “countless factors, including an increasingly complex organizational environment, critical infrastructure lack, and low extraction and treatment, to name a few.”
Zimer says, the ongoing challenge is the opening of new mines, “since the global demand is expected to outperform the production of major inputs such as lithium and copper by 2030. Given that it may take years or even decades of commitment to demanding the first production, new projects must be under development instead or risk connecting supply all over the world to several decisive minishes.”
Local governments: correction of historical imbalances
Looking at these tensions, the local population does not trust the sector to develop in the region, especially to open new mines: a major requirement to expand the output.
“The increased demand (for critical minerals) came at a price, as many societies in Latin America find themselves bearing environmental and material costs to increase mining,” Zimer notes.
This prompted local governments to intervene in increasing state financing and more partnerships between the public and private sectors, and diversify production and production chains.
The largest economy in the region, Brazil, which holds the third largest global reserves in the world for nickel and rare elements, has made $ 815 million to enhance projects in this field “in the context of sustainable and technological development.”
The government -run Codelco company in Chile has closed a 35 -year agreement with Sociedad QuíMica Y Minera De Chile to develop the extensive lithium resources in Sallar De Atacama Salt between 2025 and 2060, for increasing the Li -Time trade in the middle of the road.
In Lithium -rich Argentina, the last development of the government came with a cooperation deal with the United States to increase the long -term diversification of the latter from China.
The moves follow a major violent reaction against mining projects outside the abroad in countries including Panama, Chile and Bolivia, which led to the recent closure of the Panama Bridge due to environmental fears and popular turmoil.
“The accident confirms that the demand for critical minerals does not mean that the countries, or their citizens are ready to accept an unrestricted expansion of mining,” Zimmer warns.
