South America is shifting from a traditional mining base toward a supply hub for the global energy transition. Electrification, renewable power buildouts, electric vehicles and grid infrastructure are increasing demand for critical minerals. The Andean copper corridor across Chile, Peru and Argentina is cited as a key factor in whether future copper demand can be met.
The three countries are also described as positioning themselves to affect copper availability, pricing and supply security over coming decades. The role of the corridor is linked to both production growth and the ability to sustain output.
South America’s share of global copper output
South America accounts for approximately 41% of worldwide copper production. The three-country Andean corridor produces around 8.1 million tonnes of copper each year. Industry forecasts indicate that output could rise to between 11 million and 14 million tonnes by 2035.
The same forecasts suggest this would translate into 35% to 40% of global market share. If realized, the region would move from a major supplier toward a central pillar of the international copper market.
Copper demand drivers and projected supply gap
Copper’s strategic importance is tied to expanding renewable energy systems, power transmission networks and electric vehicles. Additional demand is associated with battery storage technologies, data centers and industrial electrification projects. Analysts warn that the global market could face a supply deficit of up to 10 million tonnes by 2040.
The source links electric vehicles to higher metal intensity, stating they require roughly four times more copper than conventional internal combustion engine vehicles. It also notes that renewable energy installations continue to consume increasing volumes of copper as decarbonization targets advance.
Chile: mature assets, declining ore grades and smelting capacity
Chile is described as the leading producer of global copper and the backbone of regional mining activity. Average ore grades have declined from 1.14% in 2010 to 0.84% in 2023. Maintaining production levels therefore requires processing larger volumes of material.
The grade decline is cited as affecting operating costs, energy consumption and water usage. The challenge is highlighted for state-owned miner Codelco, which manages some of Chile’s largest copper operations.
The country retains world-class infrastructure, established export networks and about 3.5 million tonnes of annual smelting capacity. At the same time, miners face deeper deposits, lower ore quality, water scarcity concerns and higher capital requirements.
Codelco’s planned capital expenditure is reported at nearly US$4.73 billion in 2025, reflecting reinvestment needs to sustain output from mature mines.
Peru: higher-grade resources, exploration pipeline and transport constraints
Peru is presented as having strong growth potential alongside high-quality resources. Ore grades are frequently stated at 1.2% to 2.5%. The country also has an exploration pipeline of 84 active projects.
The main constraints are described as logistics and infrastructure rather than geology. The source points to a 482-kilometer mining corridor highway linking operations in Apurímac, Cusco and Arequipa with export terminals on the Pacific coast.
Increasing mining activity is said to put pressure on this transport network, creating bottlenecks and occasional tensions with local communities. Despite these issues, mining investment remains active, with about US$12 billion advancing including projects such as Chancas and Haquira.
Exploration spending is expected to rise from US$644 million in 2024 to approximately US$1 billion in 2025. Operations including Toromocho, Tía María and Chalcobamba are forecast to support annual production growth of around 3% through 2030.
Argentina: production ramp-up estimates and flagship projects
Argentina is described as having the largest untapped opportunity among the three countries. Unlike Chile and Peru, it has not yet converted extensive geological resources into large-scale copper production. The change is said to be starting as global mining companies increase investment commitments.
The source reports government estimates that Argentina could reach about 1.64 million tonnes of annual copper production within the next decade. It also states combined copper and lithium exports could reach US$32.7 billion, compared with total mining exports of around US$6 billion in 2025.
The transformation is linked to two projects expected to play central roles. The Vicuña joint venture between BHP and Lundin Mining combines the .
The Vicuña venture combines the –deposits in San Juan Province; investment potential is reported at up to .
