The Inter-American Development Bank (IDB) has launched a new programme aimed at accelerating the development of Latin America's critical minerals sector, positioning the region to capture greater value from resources that are fast becoming central to global technology supply chains and the clean energy transition.
The initiative, called LAC Minerals, was unveiled at the IDB's annual meeting in Asunción, Paraguay, which drew nearly 4,000 participants from 48 countries, including approximately 1,700 private sector representatives.
Rather than focusing solely on raw material exports, the programme seeks to help regional economies build out industrial value chains across mineral processing, technology development and advanced manufacturing. A shift that development economists have long argued is essential for sustainable growth.
Japan has provided the initiative's anchor funding, committing $20 million to strengthen economic resilience and support sustainable development across the region's mining sector.
Several other developed economies have signalled their interest. Italy's state development finance institution, Cassa Depositi e Prestiti, is evaluating financial instruments linked to the region's mineral opportunities. Canada has pledged technical assistance through grants and indicated it may explore future financing mechanisms, while Finland has expressed readiness to collaborate and is considering tools through its climate fund to back sustainable mining projects.
IDB President Ilan Goldfajn described the programme's ambitions in direct terms, saying the goal is to help countries improve regulation and infrastructure, mobilise private investment, and strengthen institutions in order to build a strong pipeline of projects, combining the region's natural resource base with international technology, capital and long-term supply agreements.
The launch comes as competition for critical minerals intensifies globally. Demand is rising sharply for materials used in clean energy technologies, semiconductors, artificial intelligence infrastructure and advanced electronics. Latin America already accounts for roughly 30% of world production of several key minerals, giving the region significant strategic leverage if it can attract the capital and governance frameworks to develop that base.
The IDB also used the Asunción meeting to outline its broader financial trajectory, projecting $500 billion in lending over the next decade, an increase of around 50% compared with the previous ten-year period. The expansion follows a capitalisation process that included a $3.5 billion subscription.
Sources:
- IDB (https://www.iadb.org/en/news/idb-group-concludes-annual-meetings-more-scale-and-impact-development-latin-america-and-caribbean)
- Minera Brasil (https://minerabrasil.com.br/japao-anuncia-us-20-milhoes-para-iniciativa-do-bid-sobre-minerais-criticos-na-america-latina/2026/03/16/)
- CNN Brazil (https://www.cnnbrasil.com.br/blogs/fernando-nakagawa/economia/cnn-money/bid-quer-transformar-america-latina-em-hub-dos-minerais-criticos/#goog_rewarded)
- EconomicNews Brazil (https://economicnewsbrasil.com.br/2026/03/16/minerais-criticos-america-latina-bid/)
