Latin America Critical Minerals Push Accelerates Under US Pressure

Latin America Expands Its Critical Minerals Push

Latin America strengthens its critical minerals push as governments race to add value at home and meet rising US expectations. The Inter-American Development Bank (IDB) reports strong momentum across lithium, copper, and rare earths as nations seek to process more material within the region. Meanwhile, the Trump administration urges partners to shift production closer to the United States.

Countries across Argentina, Chile, Brazil, Bolivia, and Ecuador now scale up refining and processing capacity to reduce dependence on Asia. IDB president Ilan Goldfajn emphasizes that leaders from every political bloc recognize a rare opportunity to capture more value. As a result, regional ministries now accelerate investments in midstream and downstream operations to support the global energy transition.

IDB Funding and EU Partnerships Drive the Latin America Critical Minerals Push

A growing set of financial partnerships strengthens the Latin America critical minerals push. The IDB and European Union launched a joint initiative last year to support responsible investment and develop value chains across the region. The EU provided a €6.3 million grant that unlocks roughly €120 million in IDB project funding. These funds target processing, refining, data improvements, and sustainable mining practices.

Through its Mining for the Energy Transition (MET) program, the IDB also delivers technical assistance that improves regulatory frameworks, supports low-carbon practices, and enhances geological data. This structured support aims to close the cost gap with Asia. Goldfajn highlights the importance of long-term supply deals, citing Chile’s 20-year green hydrogen agreement with Germany as an example that unlocked additional IDB financing.

Demand Surges as Nations Seek More Control Over Strategic Materials

Demand for financing tied to critical minerals rises sharply as Latin America ramps up production. The region holds 60% of global lithium reserves and produces nearly half of the world’s copper, giving it strategic leverage in global supply chains. Brazil also holds the world’s second-largest rare earth reserves, though production remains limited due to technical challenges.

Argentina illustrates the need for domestic upgrading. The country exports 70% of its lithium to China, then imports it back at prices many times higher after processing. To shift this pattern, the IDB supports direct extraction and processing projects, including a $100 million loan toward Rio Tinto’s $2.5 billion battery-grade lithium project in Salta. Meanwhile, the IDB group plans to mobilize more than $30 billion this year, driven in part by mineral-related activity.

SuperMetalPrice Commentary:

Latin America now sits at a pivotal moment in the global race for critical minerals. Governments seek greater control over value creation, while the United States and European Union push for resilient, non-Chinese supply chains. This alignment creates an unusual strategic opening for the region. However, success will require rapid progress in refining capacity, regulatory clarity, and long-term offtake deals. Investors should monitor how quickly countries convert abundant reserves into integrated supply chains that feed the next generation of battery and energy technologies.