U.S. Backed Lithium Giants Set to Anchor New Chile Mining Framework

GFN – SANTIAGO:

Chile and the United States agreed to initiate discussions on rare earths and critical minerals cooperation, aiming to strengthen supply chains and reduce dependency on dominant global producers across key industrial and defense sectors.

Chile’s Ministry of Foreign Affairs said the two countries signed a joint statement to begin formal discussions on collaboration in rare earths and other critical minerals, with an initial meeting scheduled within two weeks to outline areas of coordination (via Reuters). The ministry said potential areas include public and private financing for mining projects, recycling systems for mineral scrap, and joint exploration initiatives to expand supply capacity.

The development aligns with broader U.S. policy efforts to diversify sourcing away from China, which currently dominates processing and supply chains for several critical minerals used in electric vehicles, semiconductors, defense systems, and consumer electronics. The agreement was signed in Santiago by U.S. Deputy Secretary of State Christopher Landau and Chilean Foreign Minister Francisco Perez Mackenna during a ceremony overseen by newly inaugurated President Jose Antonio Kast.

“I believe there is much we can do with the United States and Chile to strengthen the supply chains of these minerals,” Landau said.

Chile is the world’s largest producer of copper and the second-largest producer of lithium, although it remains dependent on imports for certain other critical minerals. The country hosts longstanding lithium operations, including those of Albemarle Corporation in the Atacama region, while newer entrants such as EnergyX, backed by General Motors, are planning expanded production capacity with projects targeting future output.

Market participants have said increased bilateral coordination could support investment flows and supply diversification efforts amid rising global demand for energy transition materials. The agreement reflects a broader trend of strategic partnerships aimed at securing critical mineral inputs within aligned geopolitical and industrial frameworks.