South America holds the world’s largest lithium reserves, concentrated in the so-called Lithium Triangle of Chile, Argentina, and Bolivia, and is a dominant global copper producer through Chile and Peru. The continent’s critical minerals endowment also includes significant nickel and niobium in Brazil, silver and zinc in Peru and Bolivia, and manganese across several countries. Critical minerals South America supply is central to the global EV battery and copper wiring supply chains, but the region is navigating significant policy divergence — from Chile’s proposed nationalisation of lithium to Argentina’s more investment-open Milei-era framework.
Critical Minerals Overview — South America
Chile is the world’s largest copper producer, accounting for approximately 26% of global mine supply, and the second-largest lithium producer after Australia. Chile’s Atacama salar, operated by SQM (NYSE: SQM) and Albemarle (NYSE: ALB) under CORFO contracts, is the world’s lowest-cost lithium brine operation. Argentina’s Lithium Triangle holdings — spanning the Puna plateau across Jujuy, Salta, and Catamarca provinces — host dozens of projects at various stages, with Livent’s Fenix operation and Allkem/Livent’s merged Arcadium Lithium (NYSE: ALTM) as the most advanced producers. Bolivia’s Salar de Uyuni holds the world’s largest lithium resource by volume but has seen minimal commercial development to date due to state control and infrastructure constraints. Brazil holds approximately 90% of global niobium production through CBMM’s Araxa deposit — a near-monopoly in a material critical for high-strength steel and superconductor applications.
Key Minerals by Country — South America
| Country | Key Minerals | Notable Projects | Status |
|---|---|---|---|
| Chile | Lithium, Copper | Atacama (SQM/Albemarle), Escondida (BHP), Collahuasi | Production |
| Argentina | Lithium, Copper, Silver | Fenix/Olaroz (Arcadium), Cauchari-Olaroz (Lithium Americas/Ganfeng) | Production / Development |
| Peru | Copper, Zinc, Silver, Lead | Antamina (BHP/Glencore), Quellaveco (Anglo American) | Production |
| Brazil | Niobium, Nickel, REE, Lithium | Araxa (CBMM), Onca Puma (Vale), Sigma Lithium | Production / Development |
| Bolivia | Lithium, Zinc, Silver, Tin | Uyuni (YLB state) | Early stage / state-controlled |
Major Companies & Projects — South America
SQM (NYSE: SQM) and Albemarle (NYSE: ALB) are the dominant lithium producers in Chile, operating from the Atacama salar under long-term CORFO concession contracts that were renegotiated in 2022 to increase state revenue and local content requirements. Arcadium Lithium (NYSE: ALTM), formed from the merger of Livent and Allkem, is the leading producer from Argentine brine operations and is advancing multiple expansion projects. BHP Group (ASX/NYSE: BHP) operates Escondida, the world’s largest copper mine, in Chile’s Atacama region. Anglo American (LSE: AAL) operates the Quellaveco copper mine in Peru. Sigma Lithium (NASDAQ/TSX: SGML) operates Brazil’s Grota do Cirilo hard rock lithium mine, targeting battery-grade lithium concentrate for export.
Policy, Regulation & Investment Climate
Chile’s political landscape has created uncertainty for lithium investment. The Boric government’s 2023 National Lithium Strategy proposed state-led development through CODELCO and a new state lithium company for future concessions, while allowing existing SQM and Albemarle operations to continue under revised terms. Argentina under President Milei has moved in the opposite direction, dismantling foreign investment restrictions and fast-tracking mining permits, positioning the country as the most investment-friendly lithium jurisdiction in the region. Peru has experienced significant social conflict around copper mining operations, with blockades and community protests periodically disrupting production at major mines. Bolivia’s state-controlled lithium programme has struggled to attract commercial partners at scale despite the world’s largest lithium resource.
South America in the Global Critical Minerals Supply Chain
South America’s lithium and copper are indispensable to the global energy transition. Chile and Argentina together supply approximately 35–40% of global lithium, a share that analysts at Benchmark Mineral Intelligence project will remain significant through 2030 even as Australian and new brine projects expand. South American copper — from Chile, Peru, and increasingly Ecuador and Argentina — underpins the global electrification build-out, with copper demand forecast to grow substantially on EV and grid infrastructure demand through 2035. Both the US and EU have signed Critical Raw Materials partnership agreements with Chile and Argentina, though processing of battery-grade materials remains predominantly in China.
Latest Critical Minerals News — South America
This section features the latest critical minerals news from South America. Browse all South America coverage below.
| Indicator | Data Point | Source |
|---|---|---|
| Chile share of global copper mine supply | ~26% | USGS, 2024 (estimated) |
| Brazil share of global niobium production | ~90% | USGS, 2024 (estimated) |
| South America share of global lithium reserves | ~55% (Lithium Triangle) | USGS, 2024 (estimated) |
Data is for informational purposes only and does not constitute investment advice. Figures are subject to revision.
What is the Lithium Triangle?
The Lithium Triangle refers to the high-altitude salt flats (salares) spanning Chile, Argentina, and Bolivia, which collectively hold an estimated 55% of global lithium reserves. Chile’s Atacama salar is the world’s highest-grade lithium brine deposit and the lowest-cost lithium source globally. Argentina’s Puna plateau hosts dozens of brine projects at various development stages. Bolivia’s Uyuni salar contains the world’s largest lithium resource by volume but has seen limited commercial development due to state control and infrastructure constraints.
Which companies produce lithium in South America?
The main producers are SQM (NYSE: SQM) and Albemarle (NYSE: ALB) in Chile’s Atacama, and Arcadium Lithium (NYSE: ALTM) from Argentine brine operations at Fenix and Olaroz. Cauchari-Olaroz in Argentina, a joint venture between Lithium Americas (NYSE: LAC) and Ganfeng Lithium, reached first production in 2023. Sigma Lithium (NASDAQ: SGML) produces hard rock lithium concentrate from Grota do Cirilo in Brazil. Numerous advanced developers are progressing towards production in Argentina’s Salta, Jujuy, and Catamarca provinces.
What critical minerals does Chile produce?
Chile is the world’s largest copper producer (approximately 26% of global mine supply) and the second-largest lithium producer. Key copper operations include Escondida (BHP), Collahuasi (Anglo American/Glencore), and El Teniente (CODELCO). Lithium production is concentrated in the Atacama salar under SQM and Albemarle concessions. Chile also produces molybdenum as a copper by-product and holds significant iodine production.
How is Argentina’s lithium sector developing?
Argentina’s lithium sector has accelerated significantly under the Milei government’s investment-friendly policy framework. The RIGI (Large Investment Incentive Regime) introduced in 2024 provides tax and regulatory stability for large mining investments, and foreign exchange restrictions on mining revenues have been eased. Multiple lithium brine projects are in construction or advanced development across the Jujuy, Salta, and Catamarca provinces. Analysts at Benchmark Mineral Intelligence project Argentina to become the world’s second or third-largest lithium producer by 2027–2028.
What is the outlook for South America critical minerals in 2026?
Copper production from Chile is expected to grow modestly in 2026 as several expansion projects ramp up, though labour negotiations and water constraints remain ongoing risks. Argentine lithium production is forecast to increase as Cauchari-Olaroz and other recent starts ramp to nameplate capacity. Chile’s lithium sector faces policy uncertainty as the state-led development model is implemented for new concessions. Brazil’s Sigma Lithium is expanding its hard rock operation. Analysts at Argus Media project South American lithium supply growth to outpace global demand growth through 2027, contributing to continued price pressure.
What are the investment risks for critical minerals in South America?
Key risks include political risk and policy change (particularly in Chile’s state-led lithium model and Peru’s social conflict around mining), water scarcity in the Atacama desert affecting lithium brine and copper operations, currency volatility and capital repatriation restrictions (historically significant in Argentina), and community and environmental opposition to new projects. Permitting timelines in Chile and Peru can extend to 7–10 years for large projects. Bolivia’s investment environment for lithium remains highly restricted under state control.
