"After Globalization: The Era of 'Resource Competition'... Latin America Emerges as an Irreplaceable Supplier"

JP Morgan Highlights Latin America's Strategic Resource Reserves

Amid intensifying global competition among nations to secure strategic resources, an analysis has emerged suggesting that Latin America is rising as a key region possessing essential resources for the global supply chain.

On January 21, 2019 (local time), an oil extraction facility was operating in the Vaca Muerta shale oil field in Argentina. Photo by Reuters Yonhap News

On December 21 (local time), Argentine media outlet Infobae reported that JP Morgan, in its "2026 Outlook Report," analyzed that Latin America holds strategic resources that play a central role in the global economy, and that their importance is increasing in the era of artificial intelligence (AI) proliferation.

JP Morgan cited the abundant reserves of key minerals such as lithium, copper, and silver as Latin America's competitive advantage. The region accounts for about 40% of global copper production and 38% of global copper reserves, with Chile alone responsible for 27% of worldwide production. In the case of silver, Peru has the world's largest reserves, while Mexico is the largest producer. Additionally, Argentina and Chile rank among the top countries globally in terms of economically minable lithium reserves.

Regarding the energy sector, JP Morgan assessed that Latin America's strategic value as a global energy supplier is strengthening as Europe seeks to reduce its dependence on Russian gas. In this context, the report identified Argentina as a key country within Latin America and highlighted the massive Vaca Muerta basin. Vaca Muerta is one of the largest shale basins in the world.

JP Morgan diagnosed that the global economy is moving beyond the traditional phase of globalization and is now experiencing geopolitical fragmentation. In this process, Latin America is maintaining a balance by trading with both the United States and China, and especially noted that China is emerging as a major trade partner for the region.

JP Morgan stated, "Recent investments by American and Chinese companies in Argentina's lithium industry are part of the competition to secure supply chains," and projected, "Core resource-producing countries in Latin America will directly benefit from the global increase in demand for semiconductors and electricity."