The European Union is intensifying collaborations with Latin America to secure critical raw materials, particularly lithium, essential for its energy transition. Facing a 12-fold rise in lithium demand by 2030 and 21-fold by 2050, the EU relies heavily on Chile, which supplies 79% of its refined lithium. A trade agreement with Chile, effective February 2025, introduces a chapter dedicated to energy and raw materials—an EU first.
Additionally, the EU has reached a preliminary deal with Mercosur to lower tariffs and export restrictions. Brazil, the region’s leading supplier of critical raw materials, and other Latin American countries extract 25 of the 34 materials on the EU’s critical list.
While these partnerships offer economic opportunities, they face environmental and social challenges. Over 40% of environmental conflicts in Latin America are linked to mining activities. Concerns persist about the sustainability of water-intensive lithium extraction, despite EU assurances of provisions for sustainable mining and environmental assessments.
