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| South America Critical Minerals |
South America Emerges as Low-Risk Source for Critical Minerals
South America offers stable lithium, cobalt, nickel, and rare earth reserves for Western supply chains. Meanwhile, China dominates global processing, prompting Western nations to seek diversification. As a result, Argentina, Chile, Peru, and Brazil are key targets for investment. The Verisk Maplecroft study highlights the region’s moderate political risk and resource nationalism, making South America critical for strategic mineral sourcing and long-term industrial planning.
Political Stability and Geopolitical Alignment Favor Western Investment
South America’s low-risk Andes producers outperform higher-risk jurisdictions like DR Congo, Indonesia, and Tanzania. Furthermore, Argentina and the Philippines maintain strong US ties, while Chile and Peru align strategically with Western economic interests. However, Brazil’s closer relations with US rivals require cautious engagement. Therefore, South America Critical Minerals represent the West’s most viable hedge against supply-chain shocks and geopolitical exposure.
Managing Risk While Scaling Industrial Capacity
Securing tech-critical minerals extends beyond geology; processing infrastructure and industrial capacity are essential. Meanwhile, exposure to higher-risk jurisdictions remains unavoidable for specific elements like rare earths and cobalt. As a result, Western governments must balance investment speed, local partnerships, and risk management. South America Critical Minerals can anchor resilient supply chains if nations combine financial capital with robust regulatory frameworks and strategic diplomacy.
ScrapInsight Commentary
South America provides a politically stable and geologically rich alternative to Chinese dominance. Investment in local processing and logistics is critical to strengthen Western supply chains. Strategic risk management will determine industrial competitiveness and long-term resource security.
