U.S. Eyes South America's Critical Minerals

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

The United States eyes South America's critical minerals resources amid geopolitical tensions, ambitions to expand influence and vast opportunities.

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Increasing Critical Minerals Footprint

A report published by New York law firm White & Case indicates that Washington is increasingly striving to secure critical minerals globally, as the Trump administration allocated over US$1 billion to acquire interests worldwide.

Brazil and Argentina are central to the U.S.' critical minerals strategy. In March, the Inter-American Development Bank (IDB Invest) provided a US$100 million loan, part of a US$1.175 billion package to Rio Tinto's Rincon lithium project in Argentina. For more information, see March 13, 2026, article - Argentina's Mining Boom: Rio Tinto's Rincon Project Secures US$1.17 Billion in Financing.

In Brazil, the Development Finance Corporation signed a financing agreement for US$565 million to optimize and expand Serra Verde's Pela Ema rare earths operations.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the related project reports on Rincon and Pela Ema.

"A study by U.S.-UK research venture Transition Security Project published in December revealed that the Pentagon was stockpiling critical minerals for use in military equipment, and had earmarked several billion more to invest in further projects," White & Case wrote.

South American Mining Opportunities

Washington's interest in the region is not new; for years, North American companies have invested across South American nations. This is partly due to the region's proximity, the multiple routes available for shipping products, and the historic relationship that governments in the Americas have maintained over the decades.

Yet today's needs go beyond the extraction of resources; this interest is also tied to geopolitical competition among large economies for critical minerals, such as China, western economies, and, increasingly, India.

China controls more than 90% of global rare earths processing. It also is a top lithium producer and processer and is the world's largest copper consumer. Companies like Zijin Mining, Ganfeng Lithium and China Minmetals have strong regional presences in South America.

South America's vast resources are the answer to the growing interest. Argentina, Bolivia, Chile, and Brazil hold 65.4 million of the world's 150 million tons of measured and indicated lithium resources, according to the United States Geological Survey (USGS).

Despite relatively underdeveloped lithium industries in Bolivia and Brazil, Chile and Argentina feature among the top five largest lithium producers. Supporting this status, Industrial Info is tracking 18 lithium-related plants and mines in Chile and Argentina. Across Argentina, Bolivia, Chile and Brazil, lithium projects now number 146, and total investments exceed US$41.60 billion.

Yet, the story does not stop with lithium. Chile and Peru are the world's largest and third-largest copper producers, respectively. Together, they accounted for 8 million tons of the 23 million tons produced globally in 2025, per the USGS. The investment opportunities in those countries are obvious, not only in brownfield developments but also in greenfield projects that could help expand capacity.

However, other players, such as Argentina and Brazil, want a seat at the copper table. In 2025, Brazil produced about 384,000 tons of copper or about 1.7% of the world's total, though it hosts reserves of 79 million tons or 8.1% of global reserves. The country's growth capacity is supported by the government's aim to attract more than US$6.3 billion in copper investments by 2032.

Meanwhile, Argentina is the popular kid on the block, with companies such as McEwen, Glencore, Lundin, First Quantum, BHP and others announcing billion-dollar investments to exploit the nation's untapped copper resources. This surge in interest puts Argentina squarely in the spotlight. Industrial Info is currently tracking 48 copper projects in Argentina, totalling US$23.56 billion in investments.

Argentina's appeal grows due to the Incentive Regime for Large Investments (RIGI), a scheme to attract foreign investment for projects more than US$200 million in exchange for fiscal and legal benefits. Glencore's Argentina President said in 2025 that the company aims to produce up to 1 million tons of copper annually within 10 to 15 years, moving Argentina from a non-copper producer to a global leader.

Yet, the strategy to reduce China's dominance in rare earths goes through Brazil. Although Brazil has the second-largest reserves of rare earths, close to 25% of the world's total, its actual production in 2025 accounted for less than 1% of global output. This gap underscores the country's potential. According to Industrial Info, there are 28 rare-earth ore mining projects mapped in Brazil with investments totaling US$2.78 billion.

The commodity is used to manufacture magnets for electric vehicles and wind turbines.

Besides the resources mentioned, the region also holds significant deposits of niobium, graphite, bauxite, gold, silver, iron ore and much more.

Securing South America's key minerals is pivotal for the world's future resource supply and energy transition.

Key Takeaways

• Washington has spent more than US$1 billion on critical minerals projects.
• Projects in South America are attracting US attention.
• South American critical mineral resources are vast, with significant reserves of lithium, copper, rare earths and more.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).