The United States has intensified its cooperation strategy with Latin American countries to ensure the supply of critical minerals used in batteries, electric vehicles, semiconductors, and clean energy technologies.
The initiative is primarily coordinated by the transnational association MSP (Mineral Security Partnership) and the socioeconomic alliance US-Latin America Partnership for Critical Minerals. The policy does not operate as a formal economic bloc, but as a network of bilateral and multilateral agreements focused on the security of production chains.
Chile maintains a central role in lithium supply.
Chile is considered a strategic partner due to its Free Trade Agreement with the US. This status allows Chilean lithium to be eligible for tax incentives under the Inflation Reduction Act, a law passed in 2022 that represents the largest investment in the country's history in climate and clean energy, estimated at around US$369 billion.
The country holds a significant portion of the global supply of lithium and copper, essential inputs for the battery industry and the energy transition. American companies have been expanding supply contracts and long-term agreements with local producers.
Argentina receives funding to expand mining.
Without a formal trade agreement with Washington, Argentina has been attracting investment through the DFC, the U.S. government's development finance agency.
Projects in the provinces of Salta and Catamarca have received financial support to expand lithium production in the so-called "Lithium Triangle," a region shared with Chile and Bolivia. The goal is to secure supplies for automakers and battery manufacturers based in the United States.
Brazil increases its relevance with rare earths and niobium.
Brazil emerges as a diversified strategic partner, with reserves of rare earth elements, niobium, graphite, and nickel. These minerals are used in the production of permanent magnets, electronic components, and high-performance batteries.
Companies with operations in the state of Goiás have been receiving investments to develop production chains focused on manufacturing strategic inputs outside of Asia, expanding integration with the North American industry.
Peru joins agenda focused on copper.
A traditional copper producer, Peru has been incorporated into mineral security dialogues focused on expanding projects aligned with environmental, social, and governance (ESG) standards. Copper is considered essential for power grids, infrastructure, and electrification.
Mexico occupies a strategic industrial position.
Mexico is a member of the USMCA, the free trade agreement between the United States, Mexico, and Canada, and serves as a major manufacturing hub in North America.
Despite the nationalization of lithium by the Mexican government, bilateral cooperation remains active in the integration of graphite supply chains and mineral processing geared towards the automotive industry in the US states of Michigan and Texas.
Strategy seeks supply diversification.
US policy prioritizes structured financing and governance standards considered transparent as an alternative to Asian capital, which currently accounts for a large share of global lithium processing.
This move comes amid growing demand for critical minerals driven by the energy transition, automotive electrification, and the expansion of the semiconductor industry—sectors considered strategic for industrial competitiveness and economic security.
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