Electrification across transport, power generation, grids, storage, and digital infrastructure is driving mineral demand at an unprecedented scale. Global transmission and distribution networks will need to more than double by 2050, requiring substantial volumes of copper, aluminum, and other minerals.  

By 2040, lithium demand is expected to triple, graphite demand to double, and copper demand to increase by more than 25%.  

This creates an opportunity for Latin America and the Caribbean, which holds 30% of global critical mineral reserves, to strengthen its role in mineral value chains and capture more of the economic activity generated around mining operations – including through suppliers, infrastructure, technologies, and capabilities. Doing so will require sustained, large-scale investment.

Through IDB LAC Minerals, IDB Invest finances and mobilizes capital for mining and metals projects across mineral value chains, helping de-risk investments and bring in private capital.  

For example, IDB Invest is providing $700 million in financing to POSCO Argentina to expand production of lithium hydroxide and lithium carbonate, compounds used in battery manufacturing. POSCO’s Sal de Oro Project, located in the Salar del Hombre Muerto, is expected to generate approximately 620 permanent jobs while increasing Argentina's participation in higher-value segments of the lithium supply chain. 

Partnering to Scale Mineral Investments

The International Energy Agency (IEA) estimates that mining and refining projects will require more than $750 billion in investment through 2040. Development finance institutions (DFIs) such as IDB Invest are well positioned to mobilize capital at scale through multiple financing partners, in line with the Originate-to-Share model.

For example, in Argentina, IDB Invest participated alongside the International Finance Corporation (IFC), Export Finance Australia (EFA), Japan Bank for International Cooperation (JBIC), and commercial lenders in a financing package of up to $1.2 billion to develop and expand Rincón Mining's lithium project at Salar del Rincón. The financing supports an integrated operation producing battery-grade lithium for global battery value chains.

Enabling Long-Term Value Creation

IDB Invest supports long-term value creation by investing across mineral value chains – from mining and processing to enabling infrastructure and downstream activities. Its financing and advisory services help sponsors strengthen local supply chains, workforce capabilities, community engagement, environmental performance, and governance from the earliest stages of project development. 

Through IDB LAC Minerals, the IDB Group brings together its public- and private-sector capabilities to address constraints to responsible mineral development. This includes supporting enabling infrastructure – such as ports, roads, power transmission, water supply, and desalination – as well as supporting policy and regulatory reforms that improve investment conditions. This integrated approach helps make projects bankable and translate mineral development into durable local economic benefits. 

All Minerals Matter

Critical mineral classifications help governments identify strategic supply priorities, but they do not fully capture the economic and development potential of individual projects. Mineral deposits are often polymetallic, with critical minerals co-produced alongside metals such as gold and silver. These metals can strengthen project economics and supply resilience and are themselves important inputs for semiconductors, circuit boards, and other advanced technologies.

Gold illustrates the broader development case. Although it is not included on major critical-minerals lists, the region holds approximately 12% of global gold reserves, and each direct job in gold mining supports about six additional jobs – nearly ten when induced employment is included.

IDB Invest therefore assesses mining opportunities based on project fundamentals, responsible environmental and social performance, and their potential to generate lasting development impact – not solely on whether a mineral is classified as critical. As the region’s leading DFI, we support the sustainable development of Latin America and the Caribbean’s full mineral endowment. 

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The Investable Opportunity

Latin America and the Caribbean have a significant investable opportunity: the region’s pipeline of mining projects at an advanced stage of development is estimated at $75–80 billion.

The IEA estimates that critical mineral development could generate approximately $185 billion in economic value for the region by 2035. With substantially greater local refining, that figure could rise to around $220 billion.  Yet the region currently captures only a limited share of refining: in 2025, it refined 26% of the copper it produced, 10% of its cobalt, and 7% of its rare earths, while all graphite refining took place elsewhere.

This gap highlights the opportunity to expand into higher-value segments of mineral value chains. The timing is favorable: industrial policies increasingly prioritize secure, resilient, and diversified supply sources, while demand continues to grow for minerals used in electrification, energy storage, digitalization, and grid expansion.

This is not a conventional commodity cycle. Demand for critical minerals is expected to roughly triple by 2030 and reach three to four times current levels by 2040, reflecting a structural shift toward a higher baseline of mineral demand. Drawing on its regional presence and technical expertise, IDB Invest can help translate this opportunity into bankable investments by de-risking projects, mobilizing capital, and supporting the region’s participation in higher-value segments of global mineral supply chains – creating greater value addition and quality jobs.