Advancing Latin America's Critical Minerals Potential (McKinsey & Company)

Summary

• Latin America accounts for approximately 40% of mined copper production and around 30% of mined lithium production globally.p.9
• 62% of critical minerals exports from Latin America and the Caribbean are raw materials, while only 38% are processed goods.p.10
• Over nine months, the World Economic Forum convened over 120 experts from 30 different countries.p.5
• Latin America and the Caribbean spent just 0.7% of GDP on R&D in 2023, compared with over 2% in the European Union.p.7
• Mining represented an average of 11% of total FDI across an 11-country sample between 2005 and 2023.p.10

Key insights

1. Lithium reserves in Latin America are approximately 40% of the global total, and copper reserves approximately 30%.p.10
2. Lithium refining in the region stands at approximately 20% of the global total versus approximately 30% of mining.p.10
3. A 2023 ERM study found that 62% of mining projects delayed by permitting issues were due to stakeholder opposition or environmental concerns.p.7
4. The report focuses mainly on six countries and highlights six potential actions for stakeholders.p.4
5. New copper mines require lead times of more than 15 years.p.8