The United States is strengthening its ties with South America to secure critical minerals like copper, lithium, and rare earths, aiming to reduce dependence on China. The $12 billion Project Vault program, launched in 2026, involves government and private investments to boost production and stockpile 60 essential minerals for national security and advanced technologies, including electric vehicles, AI, and defense.
Argentina is a key focus, with the U.S. signing a bilateral trade accord and the Inter-American Development Bank providing $1.2 billion to support Rio Tinto's lithium mine. The country has doubled its lithium production to 140,000 tons in the past year, and several copper projects are set to begin soon. Chile and Peru are also benefiting from deepened trade relationships, with experts predicting an 8% to 9% annual increase in lithium demand and a 10% to 15% rise in copper demand by 2030.
The U.S. is also securing rare earths in Brazil through loans and acquisitions, such as the $565 million loan to the Pela Ema mine and the $2.8 billion purchase of Serra Verde Group by USA Rare Earth. Analysts believe Project Vault will help miners find new markets and manage supply glut risks, while CME Group offers futures and options contracts to manage metals volatility.
However, not everyone is convinced. Aaron Mintzes from Earthworks argues that Project Vault's benefits may be overstated, citing growing recycling initiatives in the U.S. that could reduce demand for newly mined metals.