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Underground Power: The Andes in Global Mining Chess
Table of Contents
A growing demand for critical minerals is transforming the Andes Mountains into a focal point of global mining activity, sparking geopolitical competition and raising critical environmental and social questions.
Last updated: October 29,2025,20:38:57 UTC
The Rise of Andean Mining
The Andes Mountains are rapidly becoming a critical region in the global supply chain for minerals essential to the transition away from fossil fuels. Demand for lithium, copper, silver, and rare earth elements is surging, driven by the growth of electric vehicles, renewable energy technologies, and consumer electronics. According to the United States Geological Survey (USGS) 2024 Mineral Commodity Summaries, global lithium demand is projected to increase tenfold by 2030.
This surge in demand has focused attention on the ”lithium Triangle” – a region encompassing parts of Argentina, Bolivia, and Chile – which holds an estimated 69% of the world’s lithium reserves as of Reuters, September 28, 2023. Peru and Chile are also major copper producers, accounting for approximately 40% of global copper production in 2023, according to Statista.
Geopolitical Implications
The concentration of these critical minerals in the Andes is creating new geopolitical dynamics.China has become a major investor in Andean mining projects, seeking to secure its supply of these essential resources. The United States and other nations are also increasing their engagement in the region, aiming to diversify supply chains and reduce reliance on single sources.
in February 2024, the U.S.Department of State announced a new strategy for critical minerals, emphasizing partnerships with countries like Chile and argentina to develop sustainable and resilient supply chains. This strategy highlights the growing strategic importance of the Andes region.
Competition for access to these resources is intensifying, leading to concerns about potential conflicts and the need for international cooperation. Bolivia’s nationalization of its lithium resources in 2023, as reported by Bloomberg on April 12, 2023, exemplifies the complex political landscape surrounding these minerals.
The rapid expansion of mining in the Andes is raising significant environmental and social concerns. Lithium extraction, particularly from brine deposits, requires large amounts of water in an already arid region, potentially impacting local communities and ecosystems. Copper mining can lead to water contamination and deforestation
