Securing Electric Mobility With Responsible Extraction Of Critical Minerals In Latin America

Although the Latin American region has significant reserves of minerals essential for battery manufacturing, in particular lithium and nickel, it lacks processing and refining facilities for these minerals, thus resulting in exporting lithium to China for processing and refining; in the end, the region becoming a net importer of Electric Vehicles (EV). The region needs the opportunity to add value locally, so the role and participation of Latin America in various stages of the lithium value chain can be strengthened to scale up electric mobility in the following years. This document provides recommendations to foster collaboration between the G20 and Latin America to transition from fossil fuel-powered vehicles to electric mobility. Specifically, the focus will be on promoting a collaborative framework to facilitate a continuous dialogue between G20 and Latin America to consider the social and environmental impacts of mining; engaging the G20 in technology transfer and capacity building to Latin America related to critical minerals value chain; promoting a Blended Finance Facility for Latin America to mobilize investment for critical minerals, especially lithium; collaborate with the automotive industry in the G20 Latin American countries to scale-up electric mobility. The G20 should consider a cooperative approach with Latin America regarding electric mobility advancements that recognize the need for deep, rapid, and sustained reductions in global greenhouse gas (GHG) emissions.