Discover how Peru is leveraging its critical minerals to become a frontrunner in the clean energy transition while attracting foreign direct investment.
Peru is a frontrunner in the global race to support the clean and sustainable energy transition.
When the world transitions to clean and sustainable energy, it won’t be able to do so without the help of critical minerals. Peru happens to be rich in them. The country is endowed with strategic inputs for solar panels, batteries for electric vehicles, and wind turbines. This hidden potential of Peruvian raw materials was reported by the Economic Commission for Latin America and the Caribbean (ECLAC) in the recently released 2025 Foreign Direct Investment in Latin America and the Caribbean report, which made this mineral category a potential magnet for FDI in Peru.
Latin America attracts FDI despite a difficult global environment
The ECLAC report 2025 edition of Foreign Direct Investment in Latin America and the Caribbean shows the following trend: the global investment situation was stagnant or declining in 2024 in most regions due to inflation, high interest rates, and geopolitical tensions. By contrast, FDI in Latin America and the Caribbean increased by 7.1% to US$188.962 billion in 2024 from the previous year. In this regional overview, ECLAC pointed out that Peru outperformed with its positive growth: from US$4.339 billion in 2023 to US$6.799 billion in 2024, FDI increased by 57%.
Critical Minerals in Peru are a high priority
The ECLAC study shows that this fresh flow of foreign investment can provide countries in the region with opportunities to transform and place them on a more sustainable and productive growth path. In the case of Peru, the report directly points to critical minerals in Peru. The country has both rich reserves and a stable political and regulatory framework to benefit from rising demand. The fact that Peru has taken a clear position with this resource as the metal and non-metallic mineral most relevant to technological development and production globally is recognized as high priority by the United States.
Peru’s critical minerals are a treasure with global importance
The ECLAC study notes that the country has 10.2% of the world’s proven reserves of copper. In addition, large quantities of lithium, zinc, molybdenum, and graphite are found there, all of which are considered critical minerals (CM) for their essential role in modern technologies and energy systems. In Peru, critical minerals are not only abundant but also geographically well located for easy access to global markets. In addition, as the energy transition takes hold worldwide, demand for many of these minerals is expected to soar. For example, lithium demand is projected to increase as electric vehicles (EVs) flood global markets. Copper demand is needed to supply wire and other components for the green energy boom.
Peru and the United States signed an MoU to work together on Critical Minerals
In May 2024, Peru took an important step in a new era when it signed a memorandum of understanding with the US to strengthen cooperation in the development of critical minerals, previously a US government priority. Under Secretary José Fernández underscored the long-term importance of the agreement, citing a study showing that demand for some strategic minerals will need to grow 100 times by 2050 to meet global climate targets.
Peru’s mining sector continues to attract more foreign investment
The Peruvian Ministry of Energy and Mines (Minem) organizes and promotes the mining sector in Peru. It has a portfolio of 67 major mining projects valued at over US$64.071 billion in the country, with these assets being at different stages of development. These ongoing projects range from those that have completed feasibility studies and have already been approved to those that are currently under construction. Among them are both national and international players. The country also has 84 exploration projects valued at a total of US$1.039 billion that are working to discover new deposits and expand existing reserves.
In the first five months of 2025, Peru recorded mining investment of US$1.845 billion. This represents a growth of 4.7% over the same period in 2024, with investment growth of 39.7% in the category of mining exploration activities and infrastructure investment of 10.6%. The latest investment data for the country’s exploration activities in the mining sector appears to confirm that companies are increasingly interested in critical minerals in Peru to secure long-term supplies.
Peru is creating a pro-investment environment
Peru’s Minem is making a range of policy reforms to provide more predictability and transparency and help the mining sector increase foreign investment. Measures such as streamlined permitting procedures, fiscal incentives, and infrastructure development are all aimed at making the industry a more attractive destination for FDI.
What does ECLAC suggest to take advantage of this opportunity
ECLAC’s recent report doesn’t just point out Peru’s rich endowment of critical minerals and project this bodes well for attracting FDI. The regional agency also provides a series of recommendations to better take advantage of this opportunity. These are:
- Peru should develop a national strategy that views FDI as a development tool. A long-term vision should be developed with foreign investment serving as one of the engines aligned with the government’s broader national goals, such as job creation, technology transfer, and environmental sustainability.
- Promote synergies between public and private sectors. Collaboration between government ministries, investors, and local communities is key. It’s not enough to attract investment but to ensure it’s socially and environmentally responsible.
- Evaluate fiscal and financial incentives. Carefully targeted fiscal and financial incentives, such as tax incentives or reduced royalties, can be a way to attract responsible investors to key areas rich in critical minerals in Peru.
- Invest in human capital. Peru has a lot of potential to create more value added, so investing in training and skills development, especially technical education and vocational training, can help Peru benefit fully from mining activities.
- Leverage technology and pro-investment digital tools. Peru can utilize digital tools like blockchain, AI, etc., for supply chain tracking and compliance enforcement in environmental regulations.
IDB: The evidence of the multiplier effect of FDI in the region
The Inter-American Development Bank (IDB) has long studied the multiplier effect of foreign direct investment. Their research shows just how powerful and transformational this new capital can be for recipient economies. For each US dollar invested, as much as US$187 can be generated in additional economic activity across the broader economy. It can also help create one or two more jobs, generate US$2 in incremental exports, and another dollar in domestic investment.
The ECLAC research is the only thing between Peru and this missing US$ and its enormous potential benefits to the country. The think tank’s findings highlight the potential for investments in critical minerals in Peru to catalyze inclusive growth and regional integration. Tax revenues and local jobs come first when mining companies invest and open operations in the country. This includes the supply chains of nearby industries that are also encouraged to do business in the region, from transportation to construction to value-added processing of raw materials.
The energy transition: A geopolitical context for the value of the critical minerals in Peru
The planet’s transition to renewable energy is not only a technological and economic challenge but also a geopolitical one. Countries that sit on large and accessible reserves of critical minerals stand to gain significant influence in this new energy landscape. For Latin America and the Caribbean in general and for Peru in particular, the race to lead the international energy transition is already well underway. To this end, multilateral organizations like ECLAC and IDB can provide technical and financial support. Their research on the value of critical minerals in Peru provides multiple lines of evidence that these institutions will help ensure that this transformation is not only economically profitable but also environmentally sustainable and socially inclusive. In the words of ECLAC, a new model of development emerges: “The relative scarcity of critical minerals and global geopolitical competition present opportunities that, if well harnessed, can transform the economic development of Latin America and the Caribbean.”
Conclusions: Peru’s critical minerals in FDI’s global role
In conclusion, the unique blend of local raw materials, technical know-how, human talent, and fresh FDI flowing into the mining sector. These elements form a strategic mix that can drive long-term sustainable prosperity in Peru, increase regional influence in the global transition. provoke a more active participation in world events and create a green economy for future generations.