South America Prepares for Copper Shortfall with Regional Critical Minerals Initiative

South American governments are joining forces to create a more coordinated critical minerals hub. Chile, Argentina, Bolivia, and Peru signed a joint declaration on August 28 to encourage responsible mining investment, technical cooperation, and greater integration of mineral supply chains.

The initiative comes as the world seeks additional sources of minerals used in electrification, artificial intelligence, technology, and defense. According to Mining.com, global copper supply could fall 25% short of demand by 2035 based on current project pipelines.

The four countries want to position South America as a reliable strategic supplier while improving cooperation on geology, regulation, suppliers, workforce skills, and financing. Mariano Machado, Americas principal analyst at Verisk Maplecroft, said greater coordination could make the participating countries a more coherent destination for mining investment.

Argentina and Chile together hold about 40% of global lithium reserves, while Chile and Peru account for roughly 30% of global copper reserves. Brazil holds approximately one-quarter of the world's graphite reserves and about 15% of its rare earth reserves.