Historically, mineral–rich developing countries have extracted and exported minerals with minimal processing, limiting their benefits. Enhancing local and regional value addition can contribute to their economic development, help distribute benefits more equitably and create opportunities for diversification. It is also a strategic necessity for all countries, including those in the Global North. Greater processing and manufacturing in low– and middle–income countries reduces supply disruptions, diversifies production and enhances global resilience.
Increasingly, global initiatives recognise the need for greater participation of Global South countries in mineral value chains. Multi–stakeholder efforts, such as the UN Secretary General’s Panel on Critical Minerals for Energy Transition, emphasise the need to move up the value chain to achieve economic equity and stability.
However, turning this approach into viable and beneficial value addition projects that foster more inclusive economies requires clear and realistic strategies based on economic feasibility and cost– benefit analysis, robust industrial policy and participatory approaches. Developing and implementing such strategies and policies requires public resource allocation and institutional capacity building.
Latin America faces challenges in refining, processing, and manufacturing its rich transition minerals resources. As a result, much of the value generated benefits foreign economies more than local communities. Additionally, socio–environmental conflicts and governance gaps disproportionately impact marginalised groups, including women and indigenous communities. Addressing these challenges requires clear policy priorities, strong socio–environmental protections, and enhanced policy tools and expertise.
This policy brief outlines key strategies to promote equitable value addition, drawing on recent Latin American examples. It provides recommendations for G20 countries to support realistic and beneficial value–addition policies by facilitating technical assistance to strengthen strategic planning capacities in low– and middle–income mineral–producing countries; advocating for deeper community inclusion, strong governance and socio–environmental protection; and committing financing to value addition projects that deliver local benefits. Regional cooperation in Latin America is crucial to foster resilient value chains, while elevating the region’s influence in strategic sectors and global sustainability efforts.
