China Stakes Its Claim in Latin American Energy:

LAC countries with large lithium deposits are pressing to manufacture finished products, like batteries, in addition to supplying raw materials. Countries with wind farms and solar plants say they want to manufacture components for new facilities. But their chances are slim: The region does not have a robust local manufacturing capacity for its growing number of solar and wind projects, much less for lithium batteries. At the same time, China wants to obtain lithium at the lowest possible cost and keep value-added processes at home. Chinese companies will continue to sell their solar panels and wind turbines in LAC – and the rest of the world - as long as possible to maintain jobs in China and earn export revenues. A U.S. expert on mining and minerals said in an interview that U.S. lithium resources are much higher than the government’s published estimates, and called on U.S. companies to increase investment in domestic lithium production. “China has a strategy for investing in lithium, but we’re shortsighted,” said Jesse R. Edmondson, a professional geologist in Alabama who is the founder and CEO of U.S. Critical Minerals, which works in mining exploration and development, and the founder and principal of Critical Resources Consulting.

concern for the rest of the world,” he said. “I don’t worry that we don’t have enough material here, but I do worry that if we don’t invest in domestic lithium, we could be at the mercy of China’s battery manufacturing industry.” The U.S. Government response to China’s strategic mineral engagement China’s investment in stronger diplomatic relations and financial investments in LAC countries benefit the Chinese government as they translate into jobs, regional goodwill and new sources of essential minerals and revenue. However, the growing commercial influence of China in Latin America has implications for US-LAC relations. The Western Hemisphere, for the most part, has been aligned to the United States for decades, and LAC countries consider the U.S. an important trading partner. However, U.S. investments in Latin America, particularly in the mining of critical minerals, have been dormant lately, and aggressive Chinese investors have moved in to fill the vacuum.

China’s big push to obtain more lithium mining assets in LAC “is a concern for the U.S. and should be a

To counteract China’s dominance in the critical minerals supply chain, President Trump issued an

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