Chile, Argentina, Bolivia and Peru signed a critical-minerals cooperation pact on 28 August 2026 aimed at addressing a projected copper shortfall and coordinating supply chains for lithium and other minerals central to the global energy transition, according to a report on the agreement.
A Regional Response to a Global Gap
The pact seeks to address a projected 25% shortfall in global copper supply by 2035, according to the report, and to encourage responsible mining investment alongside greater integration between the four countries’ mineral supply chains. Together, the signatories hold some of the world’s largest reserves of lithium, largely concentrated in the salt flats of the so-called “Lithium Triangle” spanning Chile, Argentina and Bolivia, alongside major Peruvian and Chilean copper deposits.
Part of a Broader Race
The agreement adds to a fast-growing list of critical-minerals arrangements worldwide; separate tracking cited in the same period pointed to 58 such agreements signed globally since 2022, as governments and companies from the United States to the European Union seek to secure supplies of copper, lithium, cobalt and rare earths outside China-dominated supply chains. South American producers have watched buyers increasingly seek long-term offtake agreements and equity stakes in mining projects, a shift from the more transactional purchasing arrangements that dominated the sector in earlier decades.
Why It Matters
Copper and lithium underpin everything from electric vehicles to power grids and data-centre buildouts, and a supply gap of the scale flagged in the pact could weigh on the pace of the broader energy transition if new investment does not keep up with demand. For the four signatory countries, closer coordination offers a chance to capture more of the value from processing and exporting these minerals rather than shipping raw ore, while also giving them greater collective leverage in negotiations with major buyers based in North America, Europe and Asia.
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