Critical Mineral Access Shapes U.S. Trade Plans

Aug. 23, 2024
By: Hannah B. Kreinik

As we have all learned over the last decade, critical minerals are necessary parts of many of the modern world’s goods. As China’s dominance in the critical mineral market has grown, so has the U.S.’s efforts to secure other sources for these minerals. U.S. senior officials will head to Latin and South America at the end of this month to talk critical mineral supply chains and the Americas Partnership for Economic Prosperity (“APEP”). The U.S. is interested in working with Latin and South American countries to diversify critical mineral supply chains. If you have not been keeping up with U.S., Latin, and South American relations, please see our prior article on the relationship here.

This is not the first time the U.S. has considered its neighbors to the south for additional critical minerals supply (please see statements on the topic here, here, and here). Since the Minerals Security Partnership, an initiative bringing together multiple countries to focus on critical mineral supply chain sustainability, the U.S. has sought to develop critical mineral mining in Latin and South American countries, specifically Argentina, Costa Rica, and Peru. While the U.S. has undertaken numerous initiatives to expand trade with other Western Hemisphere countries over the decades, the focus on critical minerals has reprioritized some efforts.

Meanwhile, national leaders in critical mineral rich countries have discussed a trade shift to the south as promoting employment and industry growth in the region. An additional source of exports from Latin and South America, especially in critical minerals supply which is key for semiconductor and EV battery production, would also cement trade relationships with the United States for those countries. Because of these potential benefits, it is likely that critical mineral production will be reoriented away from China and towards these partners to the extent possible.

With the Supply Chain Summit taking place in D.C. this fall (see our article on the event here), we should expect more information on the U.S. plans for critical mineral supply chain resilience. For more up and coming insight on supply chain developments please contact any Barnes, Richardson & Colburn attorney.