Global Scramble for Critical Minerals: Latin America and Africa Emerge as Key Investment Hubs

A global recalibration of supply chains is fueling a surge of foreign direct investment into Latin America and Africa, as nations and corporations race to secure resources vital for the green energy transition. According to a report from OMFIF, Latin America and the Caribbean (LAC) are becoming crucial destinations for foreign capital, holding the world’s largest lithium reserves and 38% of its copper reserves. The region’s pipeline for mining projects now exceeds $151 billion, driven by a global emphasis on resource security and resilient supply chains.

Brazil is a focal point of this trend, with major mining companies planning significant investments in 2026. BNamericas reports that Brazilian mining giant Vale is set to invest between US$5.4 billion and US$5.7 billion, with a substantial portion directed towards iron ore, copper, and nickel. The company projects its investments in copper and nickel alone will climb to approximately US$2 billion annually starting in 2027. Other foreign firms are also committing substantial capital, including Canada’s Ero Copper, with a planned capex of up to US$320 million, and Lundin Mining, which is investing nearly US$1 billion across its operations in Brazil, Chile, and Argentina.

This investment push is mirrored by a strategic policy shift in Europe. The European Union is intensifying its economic partnership with Africa, moving away from traditional development aid towards an investment-led strategy under its ‘Global Gateway’ initiative, according to the European Union Institute for Security Studies. The EU’s foreign direct investment stock in Africa was reported at €205 billion in 2023, far surpassing that of China ($39 billion) and the United States ($46 billion). In a clear sign of its focus on resource security, the EU has signed memoranda of understanding on critical raw materials with several African nations, including the Democratic Republic of Congo, Namibia, and Zambia, targeting key sectors for Europe’s economic resilience.