South American Nations Unite on Critical Minerals Pact

South America is strengthening its position in the global critical minerals market through a new joint declaration signed by Chile, Argentina, Bolivia, and Peru. The agreement aims to create a unified framework for responsible mining investment, technical collaboration, and supply chain linkages across the region.

The participating governments see this initiative as a way to establish the region as a reliable source of strategic minerals essential for decarbonization, electromobility, and artificial intelligence. Verisk Maplecroft notes that successful coordination could transform separate markets into a more unified investment opportunity.

The pact comes amid rising demand for critical minerals, despite concentrated production and slow new supply projects. The International Energy Agency forecasts that global copper supply will lag behind demand by 25% by 2035, with new mines typically requiring over 15 years to begin output.

Latin America is well-positioned to help close this gap, according to a World Economic Forum report developed with McKinsey & Co. The region holds substantial deposits of critical materials such as copper, lithium, nickel, and rare earth elements.