USA Invest Over $1 Billion in Latin American Lithium and Rare Earth Supply Chains
The United States has allocated over $1 billion since January 2025 to critical resource projects in Latin America, focusing on lithium, copper, and rare earths. This strategy aims to enhance supply chain integration with Brazil and Argentina, which hold significant global reserves. The U.S. investment includes loans and long-term contracts, with projects expected to boost local production capacities and geopolitical alignment. Notable developments include Rio Tinto's $2.5 billion lithium project approval in Argentina and an Inter-American Development Bank loan for a lithium project in Argentina.
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The U.S. has committed over $1 billion to critical resource projects in Latin America since January 2025, targeting lithium, copper, and rare earths essential for technology and defense. The investment aims to integrate supply chains with Brazil and Argentina, which hold about 60% of global lithium reserves.
Brazil, with the second-largest rare earth reserves, produces only 0.02% of global output, indicating potential growth. Argentina's lithium capacity is projected to rise to 658,000 tons by 2035. The U.S.
International Development Finance Corporation is considering $465 million for Brazil’s Serra Verde project, while the Inter-American Development Bank approved $100 million for a lithium initiative in Argentina. Increasing geopolitical factors influence mining approvals, with both U.S. and Chinese investments being accepted to expedite development.
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