Clean Minerals: The Catalyst for Latin America’s Energy Future

The race toward net-zero emissions has placed Latin America at the epicenter of the global energy transition. The region is rich in the minerals that make clean technologies possible — lithium, copper, nickel, graphite, and rare earths — yet, the paradox remains: the mining sector that supplies the materials for a greener world continues to depend heavily on fossil fuels. The challenge, therefore, is not whether to mine, but how to do so responsibly.

As stated in the EMBER article “Las renovables, el camino hacia la seguridad energética en México” (Renewables, the path to energy security in Mexico): “The energy sector accounted for 85% of total demand growth for critical minerals in the past two years,” reflecting how deeply intertwined mining is with the future of renewable energy. At the same time, the article, “Una propuesta desde la Sociedad civil para aumentar la ambición mediante un enfoque de justicia climática” (A proposal from civil society to increase ambition through a climate justice approach), reminds us that “the future of mining is sustainable mining integrating social, environmental, technical, and economic sustainability within a legal framework.” This is the starting point for a new conversation: the decarbonization of critical minerals in Latin America as a precondition for an equitable and resilient energy transition.

Latin America holds more than 60% of the world’s lithium reserves and nearly 40% of its copper, concentrated in the so-called Lithium Triangle (Argentina, Bolivia, Chile) and the copper belts of Peru and Mexico. Global demand for these minerals is set to multiply by 2040, and the refining process remains dangerously concentrated in a few markets.

This creates both a risk and an opportunity. Strengthening governance, local value chains, and technological innovation can transform mineral wealth into lasting regional development. The key is ensuring that the extraction of strategic resources contributes not only to export revenues, but also to industrial growth, community well-being, and resilience against climate impacts.

Why Decarbonization Matters

Mining is one of the most energy-intensive industries in the region. Diesel-powered trucks, fossil-fuel-based electricity, and inefficient water use contribute to high emissions and operating costs. Decarbonizing operations is therefore not only an environmental imperative, but also a competitiveness strategy.

Integrating renewable energy into mining operations through solar, wind, and hybrid microgrids can drastically reduce emissions while enhancing energy security in remote areas. Electrifying processes, improving efficiency, and adopting circular economy principles are all essential to align with the expectations of international buyers and financiers increasingly guided by ESG metrics.

Mexico’s potential is particularly significant. If the country reaches 45% renewable generation by 2030, it could reduce gas imports by 20% and save more than US$1.6 billion annually. This national shift must extend to the mining sector, where renewable integration and green technology can attract investment and consolidate Mexico’s leadership in sustainable industry.

Europe’s Carbon Border Adjustment Mechanism (CBAM) adds a new layer of urgency to this transition. CBAM, which begins its transitional phase in 2026 and becomes fully operational by 2030, will impose a carbon price on imported goods, such as iron, steel, aluminum, and in later stages, copper and other critical minerals, based on the CO₂ emissions embedded in their production.

The European Commission states that CBAM’s purpose is to “incentivize cleaner industrial production in non-EU countries.” This means Latin American exporters of minerals will soon compete not only on cost and quality, but also on carbon intensity.

If the region waits until CBAM becomes mandatory, the costs will be higher and access to green financing will become more limited. Acting now, however, gives companies and governments a real advantage: a good chance to lead as low carbon suppliers, attract sustainability driven investment, and stay ahead in global markets that increasingly value climate responsibility.

Decarbonizing mining is about turning a potential carbon liability into a competitive advantage, securing markets, financing, and industrial relevance for decades to come.

Decarbonization also offers a bridge from extraction to transformation. Developing local refining and processing capacity, powered by renewable energy, can generate skilled jobs, reduce exposure to commodity cycles, and promote green industrial diversification.

Chile and Brazil are already advancing low carbon refining and hydrogen integration in copper and nickel production. Mexico and Peru are piloting battery grade lithium processing and carbon neutral copper smelting. These initiatives are the foundation of a new development model, in which the region moves from exporting raw materials to producing the low carbon inputs essential for the global clean energy economy.

The transition toward decarbonized mining requires strong governance to rebuild trust and ensure inclusive growth. Again, the EMBER article referred to above captures this point clearly: “If we do not rebuild trust, the transition will be seen as another form of unjust extraction.”

Collaborative frameworks between public, private, and community actors are essential. They must focus on transparency, equitable benefit distribution, and the integration of local innovation and labor. Latin America’s transition cannot mirror the extractive models of the past. It must become a platform for shared value creation and regional cooperation.

For Mexico and its neighbors, acting today means shaping the rules of tomorrow. The following steps can help anchor this transformation:

• Electrify mining operations with renewable and storage systems to eliminate dependence on fossil fuels.
• Implement carbon accounting and verification systems that align with CBAM and global trade expectations.
• Foster ESG-based financing mechanisms and tax incentives for low-carbon investments.
• Promote regional cooperation to harmonize sustainability standards and build shared infrastructure.
• Invest in R&D and workforce development for cleaner extraction, processing, and recycling technologies.

Mexico’s updated NDC sets a target of up to 35% emissions reduction by 2030. Achieving this will require rapid progress in renewable deployment and the accelerated decarbonization of heavy industry, starting with mining, the sector that both enables and depends on the energy transition.

The Cost of Waiting

Latin America stands at a decisive juncture. Its mineral wealth can either sustain the old carbon intensive model or propel the region into the forefront of the clean energy revolution.

With CBAM approaching, the cost of inaction is no longer theoretical. The choice is simple: lead now or pay later. Acting today means transforming Latin America’s mining advantage into a global leadership position in sustainable production before markets, regulations, and investors demand it.

I repeat: “The future of mining is sustainable mining.” The time to make that future real through decarbonized, inclusive, and resilient mineral value chains is now.