There is no energy transition without minerals from Latin America and the Caribbean.
The Latin American Energy Organization (OLADE) presents this research showing Latin America’s unique contribution to the global market for critical minerals. The critical minerals market in the region is around US$ 180 billion, or 25% of the world market. The main minerals are copper (US$ 700 billion), iron ore (US$ 50 billion), gold (US$ 30 billion) and silver (US$ 10 billion).
In order to decarbonize our economies by 2050, Latin America will need to double copper production and increase recycling in the sector. Some 20% of refined copper is produced by recycling, which saves up to 80% of energy compared to energy from mining. As for lithium, the region has almost 60% of the resources and production is expected to increase at least tenfold over the next 20 years.
As global demand for minerals for sustainable technologies and renewable energy increases, this study highlights the importance of anticipating this demand to avoid supply imbalances. As a strategic mineral exporter, Latin America faces unique challenges and seeks to improve its socioeconomic situation through investment and sustainable economic growth.
In a global context that prioritizes sustainable energy and clean mobility, Latin America has the potential to gradually make progress in production chains through extractive resources. OLADE emphasizes the urgent need to coordinate global energy demand scenarios and create a common agenda for the extraction and processing of strategic minerals to promote socioeconomic development in the region.