China’s Dominance in Latin America and the Caribbean’s Critical Mineral Sector

Topics / Spotlights

The People’s Republic of China (PRC) has adopted a highly competitive, and often predatory, approach to global mining operations, with a particular focus on South America, a region that holds some of the world’s largest critical mineral reserves. The PRC’s growing dominance across all three stages of the critical minerals supply chain (i.e., mining, midstream processing, and downstream manufacturing) is not driven by superior resource endowments, but by a deliberate and coordinated economic strategy. Through state-backed financing, Beijing strategically targets upstream extraction in low- and middle-income countries. In doing so, many Latin American and Caribbean nations accept short-term economic gains facilitated by Chinese state-owned enterprises (SOEs) and PRC-influenced private firms, often at the expense of long-term economic resilience, energy security, and defense readiness. For example, the PRC’s expanding control over midstream processing for key minerals such as copper and lithium constrains the region’s geopolitical leverage, reinforcing its role as a supplier of raw materials to Chinese and other foreign markets. This report examines key developments, trends, and data illustrating the PRC’s growing consolidation of critical mineral supply chains across Latin America and the Caribbean.