US and Chile Begin Talks to Strengthen Rare Earth and Critical Minerals Supply Chains
Chile and the United States have signed a joint statement to begin discussions on cooperation in rare earths and other critical minerals, according to Chile’s Ministry of Foreign Affairs.
The first meeting between officials from both countries is expected to take place within the next two weeks.
Discussions will focus on several areas of collaboration, including public and private financing for mining projects, recycling minerals from industrial scrap, and exploration initiatives aimed at boosting mineral supplies in both countries.
Reducing Dependence on China
The initiative comes as the administration of Donald Trump continues efforts to reduce U.S. dependence on China for critical minerals.
These materials are essential components in key industries such as electric vehicles, semiconductors, defense systems, and consumer electronics.
Strengthening supply chains for these strategic resources has become a priority for Washington, particularly as global demand for battery metals and rare earth elements continues to grow.
Chile’s Strategic Role in the Minerals Market
Chile plays a significant role in global mineral supply chains. The country is the world’s largest producer of copper and the second-largest producer of lithium, both of which are crucial for the global energy transition. However, Chile still relies on imports for certain other critical minerals.
Speaking to journalists in Santiago, U.S. Deputy Secretary of State Christopher Landau emphasized the potential for deeper cooperation between the two countries.
“I believe there is much we can do with the United States and Chile to strengthen the supply chains of these minerals,” Landau said.
“We will discuss how we can work together,” he added.
Agreement Signed in Santiago
The joint statement was signed during a ceremony in Santiago by Landau and Chile’s Foreign Affairs Minister Francisco Perez Mackenna.
The event was overseen by Chile’s newly sworn-in president, José Antonio Kast.
Kast, a right-wing political leader, took office earlier in the week and has signaled his intention to strengthen economic cooperation with the United States, particularly in strategic sectors such as mining and energy.
Private Sector Interest in Lithium
Several companies are already active in Chile’s lithium sector. U.S.-based chemical company Albemarle Corporation has been producing lithium in the Atacama Desert region for more than 50 years, helping establish it as one of the world’s leading producers of the battery metal.
The company was not immediately available for comment on the new bilateral initiative.
Meanwhile, lithium technology startup EnergyX backed by General Motors plans to build a $1.1 billion lithium processing facility in Chile.
The project is expected to begin operations in 2028 and eventually produce 50,000 metric tons of lithium per year.
EnergyX CEO Teague Egan described the agreement as a positive step at the start of Kast’s presidency.
“This is a good first step on Kast’s first day in office to sign a framework agreement with the United States,” Egan said. He added that he recently met Kast during the “Shield of the Americas” summit hosted by President Trump in Miami.
Growing Global Competition for Critical Minerals
The partnership reflects growing global competition to secure supplies of critical minerals needed for clean energy technologies, advanced manufacturing, and defense systems.
By expanding cooperation on mining, recycling, and exploration, Chile and the United States aim to strengthen their positions in these strategic supply chains while reducing dependence on rival suppliers.
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