South American Nations Unite to Address Critical Mineral Supply Gaps

Four South American countries, Chile, Argentina, Bolivia, and Peru, have formed an alliance to address global supply gaps in critical minerals. The joint declaration, signed on August 28 at the first Strategic Minerals Ministerial Meeting in Santiago, establishes a regional cooperation framework to promote responsible mineral investment, facilitate technological cooperation, and deepen integration of mineral supply chains.

The framework aims to position South America as a reliable strategic supplier for industries such as decarbonization, electric mobility, and artificial intelligence. According to the International Energy Agency, global demand for critical minerals is surging while new supply development lags, with a 25% demand shortfall expected in copper supply by 2035.

The region's resource endowment appears significant, holding approximately 40% of global lithium reserves (Argentina and Chile) and about 30% of copper reserves (Chile and Peru). Brazil accounts for roughly one-quarter of global graphite reserves and 15% of rare earth reserves. The report notes that the region's competitive advantage lies not only in resource scale but also in complementary industrial capabilities among its countries.

Chile and Argentina have already begun practicing regional collaboration, removing certain operational obstacles for cross-border mining projects and clarifying permitting and operational procedures on both sides of the border. This has helped reduce uncertainty in project planning and financing, with Chilean Mining and Economy Minister Daniel Mas stating that reactivating the mining integration treaty with Argentina is expected to unlock over US$20.7 billion in investment.