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China has solidified its influence in critical mineral mining across Latin America and the Caribbean, emerging as a dominant force in the extraction of lithium, copper, and niobium. This advancement aligns with the goals of Beijing’s Plan 2049, aimed at bolstering its military industry and leadership in the global energy transition.
In 2022, China accounted for 95.5% of Peru’s iron exports and secured a strategic position in the global lithium supply, with Bolivia, Argentina, and Chile holding 58% of the world’s reserves. Additionally, it invested over $15 billion in Peruvian mining, including the acquisition of the Las Bambas mine. Through the Belt and Road Initiative (BRI) and forums like China-CELAC, China has expanded its control over critical resources, strengthening its economic, diplomatic, and military influence in the region.
This expansion has raised concerns in the United States and the G7, as they view China’s growing presence as a threat to their access to these key materials. Critical minerals, essential for renewable energy technologies and defense, such as semiconductors and smart weapon systems, also support China’s military advancements, including autonomous systems and advanced radar technologies.
While Washington has launched initiatives to compete with Chinese investments, such as renewable energy and infrastructure projects in Latin America, analysts warn that the ability to counter Beijing will depend on the resources and political will of Western powers.
China’s consolidation as a leader in controlling critical minerals could redefine global geopolitical and economic dynamics, limiting access to these resources and cementing its status as a dominant technological and military power. The United States and its allies face the challenge of implementing effective strategies to prevent a potential Chinese monopoly and secure the stability of their strategic supply chains.
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