OECD urges Latin America to 'seize' critical mineral opportunity amid global demand

Latin American and Caribbean nations have an "unprecedented opportunity" to leverage their vast reserves of critical minerals, according to OECD Secretary-General Mathias Cormann. He urged the region to implement "ambitious reforms" to meet the growing global demand for these resources, essential for the energy and digital transitions.

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The world is offering Latin America and the Caribbean an unprecedented opportunity.

Global economic powers like the United States, Japan, and France are actively working to lessen their dependence on China for critical minerals. This geopolitical shift positions Latin America as a key alternative supplier. The U.S. is focusing on countries such as Brazil, Chile, and Argentina, while the European Union anticipates improved supply from Mexico following trade agreement updates.

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global supply chains are being reconfigured, demand for critical minerals is growing and the region has exactly what global markets need.

Cormann highlighted that the region possesses "exactly what global markets need," in addition to its potential in clean energy, agriculture, and its young, dynamic population. He stressed the need for "acting now" to seize this moment. To capitalize on this opportunity, he called for reforms that would boost private investment, enhance regional integration, strengthen public institutions, and increase labor productivity.

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act now

While Brazil holds the world's second-largest reserves of rare earth elements, its exports are currently minimal. Bolivia, Argentina, and Chile are significant sources of lithium, and Chile and Peru are prominent in copper production. Cuba also possesses cobalt reserves. The OECD's 18th International Economic Forum for the region, held in Paris, served as a platform to discuss these opportunities and challenges.

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ambitious reforms