Critical minerals in contention: South America as the new strategic battleground between the US and China.
The South American subsoil holds much more than just natural resources: today it is the basis of a silent but decisive confrontation between the United States and China. The so-called critical minerals have become indispensable for the high-tech industry, and both giants seek to secure control of these strategic reserves.
U.S. and China Strongly Bet on South American Resources
The magnitude of the current dispute is evident. From Washington, the “de-risking” strategy is being driven, aimed at reducing dependence on the Chinese supply chain. This involves forging agreements with countries in South America, investing in regional processing capacities, and opening new trade routes to the U.S. market. Meanwhile, China is accelerating its advance through the Belt and Road Initiative. Their goal is to consolidate dominance not only over extraction but also over the transport and refining of these minerals that power industries as diverse as semiconductors, electric vehicles, and advanced weapons systems.
The “Mineral Trilemma” and Regional Autonomy
The competition between the powers leaves Latin American countries facing a complex challenge. Experts call it the “mineral trilemma”: balancing national security, economic benefits, and environmental sustainability. Achieving that balance is key to prevent mineral wealth from becoming a double-edged sword. In this scenario, Brazil and Argentina become protagonists of this new geopolitics. Their task is to harness their resources to promote their own technological development without falling into exclusive dependence on China or exposing themselves to U.S. commercial pressures.
In a scenario where technology and global defense depend on these minerals, South America could become either the arbiter or hostage of the next great global showdown.
