U.S. and Argentina sign critical minerals deal to strengthen supply chains

U.S. and Argentina sign critical minerals deal to strengthen supply chains
Trump shakes hands with Javier Milei during the 80th United Nations General Assembly, in New York City, New York, U.S.,23 September, 2025
Reuters

The United States and Argentina have signed a framework agreement to strengthen cooperation on critical minerals on Thursday, reaffirming a shared commitment to building secure, resilient and competitive supply chains.

Argentina’s Foreign Ministry said the two countries agreed to deepen collaboration on the mining and processing of critical minerals, which are essential for electric vehicles, renewable energy systems, defence technologies and advanced manufacturing.

The ministry said the agreement represents an opportunity for economic and productive growth in Argentina and reflects the strategic partnership between Buenos Aires and Washington.

Argentina’s mining exports reached $6.04 billion in 2025, underlining the sector’s growing importance to the national economy.

The deal comes as Washington seeks to diversify sources of critical minerals and reduce dependence on dominant global suppliers, while expanding strategic economic partnerships in Latin America.

Officials said the framework will support investment, improve access to key resources and help reduce vulnerabilities to supply disruptions across the value chain.

U.S. officials have repeatedly warned that overreliance on a narrow group of suppliers creates national security risks, particularly for defence and advanced technologies.

The agreement also aligns with Washington’s broader push to secure supply chains with politically stable partners as competition with China over mineral access intensifies.

Why critical minerals are strategic

Critical minerals are no longer treated as ordinary commodities. They are now central to energy security, technological competitiveness and military capabilities.

Electric vehicle batteries, wind turbines, solar panels and high-capacity energy storage all depend on steady access to minerals such as lithium and copper. At the same time, geopolitical rivalries have exposed how vulnerable supply chains can be when production and processing are concentrated in a small number of countries.

The United States has been signing similar arrangements with selected partners to diversify supply sources, encourage responsible mining and support downstream processing outside dominant global hubs. The agreement with Argentina fits into that broader strategy.

Argentina is one of the world’s major holders of lithium resources and forms part of South America’s so-called “lithium triangle”. The country has also seen rising international interest in its copper and other base-metal potential.

Successive governments have promoted mining as a pillar of economic recovery, especially as Argentina seeks to boost exports and attract hard currency.

The country is also seeking to move beyond raw material exports by developing domestic processing capacity, a goal supported by the new framework with the United States.

Large-scale projects are under development, but many still require significant financing, infrastructure and long-term offtake agreements.

By formalising cooperation with the United States, Argentina strengthens its position as a preferred supplier for Western markets and improves its appeal to international investors seeking long-term stability.

For Buenos Aires, the deal supports efforts to stabilise the economy through export growth and foreign investment, while for Washington it helps anchor supply chains within friendly jurisdictions.

Tags