Some key critical mineral project developers selected by the European Union have called for urgent funding, with liquidity constraints potentially putting projects in jeopardy and limiting the bloc's ability to reduce dependence on China. 23 of the 60 EU-selected projects issued an "Urgent Call to Action" last month, stating that "urgently unlock projects, particularly those working towards final investment decision which face acute liquidity and market pressure and immediate jeopardy" is essential. The EU chose 47 projects in Europe in March 2024 and 13 more outside the bloc in June 2025 after Beijing imposed export controls on several critical minerals needed for energy transition, electronics and defence. The European Union has established a framework to mobilise €1.7 billion ($1.97 billion) in financing for strategic projects since December, though the EU spokesperson acknowledged being "fully aware of challenging market conditions."
South America is positioning itself as a coordinated critical minerals production and investment hub as governments race to secure minerals for energy, technology and defence applications. Chile, Argentina, Bolivia and Peru signed a joint declaration on strategic minerals on August 28, establishing a regional framework to promote responsible mining investment, technical cooperation and deeper integration across mineral supply chains. The agreement was reached during the first ministerial meeting on strategic minerals in Chile's capital Santiago, attended by mining authorities from all four countries. The governments said the initiative is intended to position the region as a reliable strategic supplier of minerals needed for decarbonization, electromobility and artificial intelligence.
Latin America holds significant reserves of critical minerals essential to electrification, the energy transition and digital infrastructure. Argentina and Chile together account for about 40% of global lithium reserves, while Chile and Peru hold roughly 30% of the world's copper reserves. Brazil has about a quarter of global graphite reserves and 15% of rare earth reserves, according to a recent World Economic Forum report produced in collaboration with McKinsey & Co. The WEF noted that Latin America's competitive advantage extends beyond the scale of its deposits to the complementary resources and industrial capabilities spread across its economies.
The region faces significant supply chain pressures as global demand for critical minerals rises while production remains concentrated and new supply is slow to develop. Based on the current project pipeline, the International Energy Agency projects global copper supply could fall 25% short of demand by 2030, with new mines typically taking more than 15 years to reach production. Lithium faces similar pressures, compounded by stagnant greenfield exploration spending and rising discovery costs. Western efforts to reduce exposure to China are directing mining investors towards new markets, putting the region near the front of the queue, according to Verisk Maplecroft's analysis.
Chile and Argentina are already implementing coordinated policy approaches to unlock significant investment opportunities. The countries have cleared operating protocols for major cross-border projects, reducing uncertainty where mineral deposits cross an international boundary but encounter separate permitting and operating regimes. According to Chilean mining and economy minister Daniel Mas, reviving the mining integration treaty with Argentina would unlock more than $20.7 billion in investment and add 540,000 tonnes of copper a year to the market. The larger challenge remains turning South America's geological strength into the industrial capacity needed to capture more value from its resources rather than simply exporting mined material.
The Trump administration has launched comprehensive initiatives to strengthen critical mineral supply chains globally, including the establishment of the "Pax Silica" coalition with allies and strategic partners including Australia, Japan, South Korea, Singapore and Israel. The administration has also announced $3 billion in investments in critical mineral and battery projects and signed an executive order declaring critical minerals necessary for US national defense, giving the Commerce Department authority to restrict exports. Washington is building a network of multilateral partnerships aimed at diversifying supplies and challenging China's dominance of global critical mineral and rare earth supply chains, combining US mining and processing capacity with international partnerships and financing from institutions including the Export-Import Bank and the US International Development Finance Corporation.
