New GIGA Focus Latin America | Europe’s Quest for Critical Raw Materials in Latin America

GIGA Focus Latin America.

Europe’s Quest for Critical Raw Materials in Latin America.

Number 3 | 2026 | ISSN: 1862-3573.

For Europe, diversifying imports of critical raw materials (CRM) has become a strategic imperative to safeguard the energy transition, mitigate supply chain vulnerabilities, and reduce structural dependencies in the digital, defence, and aerospace sectors. Of the 34 CRM listed by the EU, 25 are extracted in Latin America, highlighting its strategic importance in the global resource landscape.

• With the 2024 Critical Raw Materials Act (CRMA) and the 2025 RESourceEU Action Plan, the EU seeks to ensure a secure and sustainable supply of CRM for its industries and strengthen its resilience vis-à-vis external pressures.

• The EU–Mercosur agreement and the modernised EU–Chile trade agreement are expected to enhance the EU’s ability to secure access to CRM, as Argentina, Brazil, and Chile occupy strategically significant positions in global supply chains.

• The EU has signed Memoranda of Understanding with Argentina and Chile on the development of sustainable raw materials value chains, while a comparable agreement with Brazil is under negotiation.

• Structural bottlenecks persist on both the EU and Latin American sides regarding the development of processing and refining capacities for CRM, resulting in dependencies upon third countries, particularly China.

• The EU and Latin American countries share an interest in reducing unilateral dependencies as a basis for deeper cooperation. However, divergent priorities shape this cooperation, as Latin American partners seek to expand downstream industrial capabilities beyond the mere extraction of CRM.

Policy Implications

The EU faces competition in securing access to CRM. To establish itself as a preferred partner in Latin America, it must align its strategy with its partners’ priorities, particularly their interests in industrial development and technological cooperation. Declaratory commitments and programmatic announcements need to be backed by credible financial resources and concrete investment.

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