Chile critical minerals output underpins much of the global energy transition and a growing share of Western defence supply chains. The country produces roughly 23% of the world’s copper and holds more than 40% of global lithium reserves, while a single Chilean export — rhenium — supplies nearly half the world’s demand for a metal indispensable to jet engine and missile turbine superalloys.
In January 2026, Chile’s Ministry of Mining formalised this position with the launch of a National Critical Minerals Strategy, the country’s first explicit policy framework naming and tiering its strategic mineral assets.
Chile’s 14 Designated Critical Minerals
The strategy sorts Chile’s mineral base into three tiers, based on existing production share and future strategic potential. Production figures cited here are cross-referenced against the USGS Mineral Commodity Summaries, the standard reference for global mineral output data.
| Tier | Minerals | Rationale |
|---|---|---|
| Tier One — Global Anchors | Copper, lithium, molybdenum, rhenium | Chile already holds dominant global production share, including 46.8% of global rhenium output |
| Tier Two — Strategic Optionality | Cobalt, rare earth elements, antimony, selenium, tellurium | Minimal current domestic production but rising demand from AI hardware, semiconductors and clean energy |
| Tier Three — Value-Chain Upside | Gold, silver, iron ore, boron, iodine | Established extraction; strategy targets a move into higher-value processing |
Rhenium is the standout Tier One asset for defence buyers specifically: it is heat-resistant beyond most alternatives and is used in nickel-based superalloys for jet and rocket turbine blades, giving Chile outsized leverage in a metal Western military supply chains cannot easily substitute.
Copper: Chile’s Largest Critical Minerals Export
Chile remains the world’s largest copper producer, a position anchored by Codelco, the state-owned miner and the single largest copper-producing company on earth, generating more than $16.4 billion in annual revenue. Antofagasta plc, a London-listed miner controlled by the Luksic family, operates the large-scale Los Pelambres copper complex and represents one of the clearest routes for international investors to gain direct exposure to Chilean copper output. Current spot pricing and historical trends are tracked on CMN’s copper price page.
Lithium: The Atacama Duopoly
Chile holds the world’s second-largest lithium reserves, concentrated in the brine deposits of the Atacama Salt Flat in the country’s north. Extraction is dominated by a duopoly: SQM (Sociedad Química y Minera de Chile) and US-based Albemarle. A full operational and financial breakdown of SQM’s Atacama position is available in CMN’s SQM company profile; current lithium pricing is tracked on the lithium price page.
The Five Pillars of the National Strategy
Beyond the tiered mineral list, Chile’s framework — outlined by Chile’s Ministry of Mining — sets out five policy pillars:
- Production and Diversification — streamlined permitting and modernised geological survey data to accelerate exploration
- Responsible Mining — ESG alignment and circular-economy recovery of minerals from existing mine waste
- Industrialisation and Added Value — moving from raw brine and ore exports toward domestic component manufacturing
- International Integration — bilateral supply agreements, including the US–Chile joint declaration signed in March 2026 covering rare earths and rhenium cooperation
- Enabling Capacities — long-term regulatory and technological infrastructure to support execution
Geopolitical Position: Caught Between Washington and Beijing
Chile sits directly inside the US-China contest for critical minerals supply. China remains a dominant buyer and investor in Chilean mineral output, while the United States has pushed to pull supply chains — rhenium and rare earths specifically — away from Chinese-linked processing routes. The March 2026 joint declaration with Washington signals Chile’s intent to hedge that exposure without severing Chinese trade ties, a balancing act that will shape pricing and offtake agreements through the rest of the decade.
Risks: Permitting and Water Disputes
President José Antonio Kast’s administration has prioritised pro-investment deregulation and lower corporate taxes, but investor caution persists around institutional permitting capacity and unresolved water-use disputes with Indigenous communities in the hyper-arid northern salt flats where most lithium extraction occurs. These disputes are a direct constraint on how quickly Tier One production — particularly lithium — can scale to meet the strategy’s targets.
Why Chile Matters for Critical Minerals Buyers
For procurement and defence supply chain specialists, Chile critical minerals exposure offers something few other jurisdictions can: simultaneous depth in copper (electrification), lithium (batteries) and rhenium (aerospace/defence superalloys), backed by a now-formal government strategy and a March 2026 bilateral framework with the United States. Investors tracking the space have direct equity routes through Codelco-adjacent suppliers, SQM, and London-listed Antofagasta plc.
What are Chile’s critical minerals?
Chile’s National Critical Minerals Strategy designates 14 minerals across three tiers: copper, lithium, molybdenum and rhenium (Tier One); cobalt, rare earths, antimony, selenium and tellurium (Tier Two); and gold, silver, iron ore, boron and iodine (Tier Three)
How much of the world’s copper does Chile produce?
Chile produces roughly 23% of global copper supply, led by state-owned Codelco and London-listed Antofagasta plc.
Why is Chilean rhenium important for defence?
Chile controls approximately 46.8% of global rhenium production. Rhenium is used in nickel-based superalloys for jet and rocket turbine blades, making it critical to aerospace and defence supply chains with few substitute sources.
Who controls Chile’s lithium production?
Chile’s Atacama lithium brine extraction is dominated by a duopoly of SQM (Sociedad Química y Minera de Chile) and US-based Albemarle.
