2026 National Profile: Chile

Climate Characteristics: ・Northern region: tropical desert climate—extremely arid ・Central region: subtropical Mediterranean climate—dry summers and mild, rainy winters ・Southern region: temperate oceanic climate—humid year-round ・Far southern region: subpolar climate—cold and windy Significance of Climate for Commodities: ・The arid conditions of the Atacama Desert facilitate open-pit mining and lithium extraction from salt flats, yet extreme water scarcity constrains mining development-2 ・Irrigated agriculture in the central region relies on meltwater from the Andes; drought cycles impact fruit and wine production ・Abundant forests and water resources in the south support forestry and aquaculture 1.3 Natural Resources—Chile’s “Resource Foundation” Chile is one of the world’s most important mineral resource countries, with copper and lithium as its core endowments, alongside strategic minerals including molybdenum, rhenium, gold, silver, iron ore, iodine, and boron. In recent years, the Chilean government has launched its “National Critical Minerals Strategy,” promoting a shift in resource development—from “single-commodity dependence” to “diversified deployment”-2-6. Mineral Resources—“Copper Kingdom” and “Lithium Newcomer” Mineral Global Standing Key Data Strategic Significance Copper World’s largest producer Accounts for ~23% of global output; projected output to reach 5.6 million tons in 2026, and exceed 6 million tons in 2027–2028 Economic lifeline: copper exports constitute ~35–40% of Chile’s total exports-5-8 Lithium World’s second-largest producer (after Australia) Accounts for ~20.4% of global output; the Salar de Atacama is the world’s premier lithium resource site Critical mineral for energy transition: essential raw material for electric vehicle batteries—strategic value continuously rising-2 Molybdenum Major global producer Accounts for ~14.6% of global output Steel industry additive; co-produced with copper Rhenium World’s largest producer Accounts for ~46.8% of global output Critical raw material for high-temperature alloys in aircraft engines—exceptionally high strategic value-2 Gold & Silver Major global producer Gold exports surged over 100% year-on-year in February 2026, reaching USD 325 million-9 Safe-haven assets; held in central bank reserves Iron Ore Major global producer Primarily supplies Asian markets Raw material for steel industry Iodine & Boron Global leader Chile is among the world’s top iodine producers Raw materials for pharmaceuticals and chemical industries Copper—Chile’s “Economic Spine”: Chile accounts for ~23% of global copper output and hosts world-class mines such as Escondida (the world’s largest copper mine), Collahuasi, and Chuquicamata-5-8. Copper mining contributes ~35% of Chile’s export revenue and drives related sectors—including mining equipment, power generation, and logistics. Christian Künzle, Chairman of the Board of Directors at the Chilean Copper and Mining Research Center (CESCO), stated: “Chile has enacted a series of policies aimed at stabilizing output growth and mitigating volatility in end-product prices—by enhancing smelting and processing capacity and developing diversified, higher-value-added products—to sustain a healthy, elevated competitive advantage over the long term.”-5 Lithium—Strategic Upgrade of “White Petroleum”: Chile accounts for ~20.4% of global lithium output, concentrated primarily in the Salar de Atacama-2. As the global energy transition accelerates, lithium’s strategic importance is being redefined. In February 2026, Chile’s lithium export value more than tripled year-on-year, reaching USD 397 million—the highest level since early 2023-9.

Foreign Investment Weekly Report │ India attracted ~USD 50 billion in foreign investment during the first half of FY2026; Chile raises its 10-year mining investment forecast to over USD 100 billion · Issue #50

China stands ready to work with Latin American and Caribbean countries to fully leverage existing economic and trade cooperation mechanisms, and continue hosting relevant events—including the China–Latin America Industrial Investment Cooperation Forum, the China–Latin America Entrepreneurs’ Summit, the China–Latin America High-Level Forum on Investment and Cooperation, the China–Caribbean Economic and Trade Cooperation Forum, and the China–Latin America Private-Sector Cooperation Forums or promotional events—to provide Chinese and Latin American enterprises with fair, open, and non-discriminatory business environments in each other’s countries. China will also consult with Latin American partners on signing additional investment protection agreements and double taxation avoidance treaties, thereby creating favorable conditions and an enabling environment for enterprise-to-enterprise investment cooperation. Adhering to the principles of enterprise-led initiatives, market-oriented operations, shared benefits and responsibilities, and win-win cooperation, China supports its enterprises in investing and operating in Latin American and Caribbean countries, thereby promoting local employment. China will align its high-quality industrial capacity and advanced equipment with Latin American and Caribbean demand, helping those countries in need enhance their autonomous and sustainable development capabilities. Previously, the Chinese government issued its first and second policy documents on Latin America in November 2008 and November 2016, respectively, providing policy guidance for the development of China–Latin America relations. (Source: Ministry of Foreign Affairs) ▍India Attracted ~USD 50 Billion in FDI During First Half of FY2026 According to India’s Business Standard newspaper, government data show that India’s total foreign direct investment (FDI)—including equity investment, reinvested earnings, and other capital—reached approximately USD 50 billion in the first half of FY2026 (April–September 2025), up from USD 42.3 billion in the same period of FY2025. Equity investment by foreign investors rose 18% year-on-year to USD 35.18 billion. (Source: Economic and Commercial Office of the Embassy of the People’s Republic of China in the Republic of India) ▍Chile Raises Its 10-Year Mining Investment Forecast to USD 10.455 Billion According to a December 11 report by Chile’s El Mercurio newspaper, the Chilean Copper Commission (Cochilco) released its 2025–2034 Mining Investment Projects Report, forecasting total mining investment over the next decade to reach USD 10.4549 billion. Mining Minister Williams stated that this reflects renewed vitality in Chile’s mining sector, with growing investment signaling confidence in the country—and in the sector’s transformation toward greater modernity, sustainability, and competitiveness. Chile is the world’s largest copper producer and the second-largest lithium producer. Benefiting from rising copper prices driving new project launches and the restart of legacy projects, copper-related investments account for 89.8% of Chile’s total mining investment—the highest share on record. Lithium investment, included in Cochilco’s statistics only since 2021, has grown significantly: it is projected to reach USD 4.7 billion in 2025—double the figure from four years earlier. Among these, the joint venture between Chile’s state-owned mining company and Rio Tinto—the “Altiplano Salars” project—is valued at USD 3.2 billion, representing a landmark public-private partnership under Chile’s national lithium strategy. By project type, 81% are expansions and optimizations of existing mines, while 19% are entirely new greenfield projects. By implementation status, 41% have entered the execution phase, while the remainder remain in pre-feasibility or feasibility study stages. By region, the Antofagasta Region leads with USD 4.02 billion in investment—driven largely by large-scale expansion and ongoing operational projects—followed by the Tarapacá Region (USD 1.447 billion). The report also notes persistent uncertainties facing Chile’s mining investment landscape: approximately 40% of planned projects remain contingent, requiring final decisions on technical, environmental, or financing matters.

Chile's State-Owned Miner Codelco Says Restructuring Plan May Be Delayed Until End of 2026

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Codelco announced its restructuring plan may be delayed until late 2026, potentially involving workforce reductions of 5% to 20%. The move impacts Chile's copper-dependent economy amid rising unemployment concerns.

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