The Chilean government is committed to keeping China as one of its primary buyers, given the large scale of its industrial capacity. However, given the rise in global demand as data centre investments increase, Chile is looking to diversify its supply chain.
Chile is seeking to expand its copper exports and bring in approximately $100 billion in mining investment over the next decade. This is part of the country’s strategy to reduce its reliance on demand from China.
The Chilean government is committed to keeping China as one of its primary buyers, given the large scale of its industrial capacity. However, given the rise in global demand as data centre investments increase, Chile is looking to diversify its supply chain.
China accounts for roughly 59% of global copper consumption and over half of the outbound shipments from Chile. In 2025, Chile produced 5.3 million tonnes of copper, a quarter of the global output, becoming the world’s largest producer. No major buyer can replace Chilean supplies on short notice.
This need to diversify its customer base arose from the unbalanced trade dynamic between the two countries. According to Chile’s Central Bank, there is a trade dependence on China, and most of the exports are unprocessed ore.
The figures from the first half of this year indicate that Chile exported $19.05 billion worth of copper concentrate, of which Chinese consumption accounted for $11.63 billion. On the other hand, the US emerged as the leading buyer of refined copper, importing $9.29 billion worth, with China trailing far behind at $1.16 billion.
Expanding its export market entails transitioning Chile from shipping mostly copper concentrate to refined metal. This would leave Chilean producers directly in competition with Chinese smelters, which mostly buy and process most of their ore. China now has adequate refining capacity, which can easily strain pre-existing contracts between domestic and international parties.
As Chile’s mining prospects expand, auxiliary industries are also growing. Last year, Hitachi Construction Machinery announced its plans to establish the Hitachi Construction Machinery Latin America to oversee and expand its LatAm business. In June 2026, the company’s CEO and President, Tetsuya Kitagawa, said in an interview that the company’s medium-term management plan includes earning ¥150 billion in revenue in 2030.
Chile is an attractive headquarters thanks to its favourable business and tax systems. In addition to offering operational efficiency, it is a stable and secure location. Moreover, the country’s expertise in both mining and construction makes it a hub of high-skill and talent. Many of Hitachi’s customers having their regional headquarters in Chile is also why it chose to set up its LatAm base here.
Chile is not the only country in Latin America to expand copper mining. Colombia and Argentina have also received hundreds of mining permits as demand for the metal soars. The International Energy Agency expects a supply shortfall of nearly 30% globally in 2035. However, some analysts argue that LatAm is well positioned to capitalise on that scenario.
Along with Ecuador and Brazil, Colombia and Argentina have been identified as high-potential copper jurisdictions. Although Chile and Peru remain the regional giants, these other countries are also gaining traction for their vast copper deposits, offering opportunities for further exploration and future supply growth.
Colombia’s varied geological formations, which can be found in a variety of deposit types and geographic locations, have led the Mining and Energy Planning Unit (UPME) to highlight the country’s geological potential for copper mining. But presently, there is just one active copper mine. Another has just acquired the environmental licenses needed to start building.
Argentina has substantial production potential, as evidenced by the discovery of resources like Taca Taca and Josemaria. The largest copper deposit in the world, Chuquicamata, is situated in northern Chile may be threatened by these exciting prospects. However, the only active copper mine in Argentina produces mediocre levels. Copper makes up only 1.7% of Argentina’s overall mineral exports, according to the country’s mining ministry.
Estimates indicate that demand for copper will outpace supply by 10 million metric tons by 2040. To meet this growing demand, South America, which presently contributes around 41% of the world’s copper output, will likely increase its market supply. Chile, Peru and Argentina have been identified as the main contributors, each bringing their own strengths to the continent’s copper corridor.
Chile’s main advantages are its infrastructure and its lead in the annual smelting capacity of 3.5 million tonnes. Peru has high-grade deposits with copper concentrations ranging from 1.2% to 2.5%. With 84 exploration projects at present, that number is soon increasing. While Argentina’s entire geological prospects are yet to be explored, it offers the highest ore grades in the region, averaging 1.5% to 2.8% copper.
The annual copper production of these three countries currently totals approximately 8.1 million tonnes. Analysts predict that this figure will likely reach 11 to 14 million tonnes by 2035, pushing the corridor’s global market share to 30%-40%. These figures will undoubtedly make the region the world’s most sought-after copper economy.
Latin American countries are facing a crucial economic turning point as the world’s need for copper soars. Chile is effectively changing the dynamics of its trade by expanding its export markets, switching to the production of refined metals, and drawing billions of dollars in mining investments. Large geological potential is being unlocked at the same time by new regional players like Colombia, Argentina, and Peru. Together, this potent copper corridor in the LatAm region is positioned to secure its position as the global hub for one of the most important industrial metals.
