Why aren’t the Americas producing more critical minerals? A report from the Institute of the Americas, co-authored by a GPS student, offers solutions
A new report from UC San Diego’s Institute of the Americas shows that countries in the Western Hemisphere are lagging dangerously behind countries like China when it comes to processing critical minerals.
The report, “Critical Minerals: The Western Hemisphere’s Opportunity,” was written by Mateo Micucci, a Master of International Affairs student at the university’s School of Global Policy and Strategy (GPS), and Christopher Nyce, a diplomatic fellow at the institute, served as co-author.
A select group of minerals have become so ingrained in the technologies of the 21st century that they are easily overlooked. But Micucci and Nyce’s report highlights the central role that they play — not just in consumer electronics, but also for clean energy equipment, military artillery, artificial intelligence servers and manufacturing.
‘This is not just a mining issue’
Micucci and Nyce found that North and South American countries are not lacking in raw materials, as vast amounts of minerals are buried within them; Chile, for example, is estimated to hold 60% of the world’s supply of lithium. And in many cases, mineral-rich countries are taking advantage of their resources and mining them.
“This is not just a mining issue,” Micucci said. “It is increasingly a foreign policy, security and regional development issue for the United States and the Americas.”
The biggest problem that Micucci and Nyce encountered is that nations in the Americas are sending most of their raw materials to other countries, most notably China, to be refined and processed further. This has allowed China to dominate the market for “mid-stream,” or intermediate, processing as well as manufacturing further up the ladder.
“The Western Hemisphere has a major resource advantage in raw minerals, but remains strategically weaker in the higher-value stages of the supply chain, like processing and refining,” he explained.
In addition to laying out the current realities of mineral production in North and South America, the co-authors proposed policy solutions that could help keep more of the production process in the Western Hemisphere and remain competitive in the global market, particularly for processed minerals.
Given the wide range of disciplines the report drew on, Micucci said “it felt like a real world application of many parts of the GPS curriculum all at once.”
The report recommends nine steps for the Americas to become competitive mineral producers through new regulations that help reassure customers that they will receive their orders; economic incentives to offset the business risks for mineral processors and manufacturers; partnerships with local and Indigenous populations to ensure public support for development; and international alliances to guarantee mineral purchases.
GPS opens the door to professional connections
As he worked on this project, Micucci employed the skills that he’s learned as an MIA student, and his work also highlights the ways in which GPS students can get involved in research projects through the many research centers affiliated with the school.
Given the wide range of disciplines the report drew on — including economics, foreign policy analysis, security studies, Latin American geopolitics and policy writing — he said “it felt like a real world application of many parts of the GPS curriculum all at once.”
The two met at a conference put on by the Institute of the Americas dedicated to energy, during which Micucci served as a rapporteur, documenting and summarizing what was said. Nyce, who is also affiliated with the institute, likewise attended the conference, and it was through their introductions to each other that Micucci learned about the minerals project.
It was natural, then, for Micucci and Nyce to once again attend another gathering to announce their findings, this time below the equator in Buenos Aires. The co-authors spoke on April 10 at a conference — co-sponsored by the Institute of the Americas, the University of Buenos Aires’ CEARE and the Argentine Center of Engineers — focused on Argentina’s opportunity to contribute more to the mineral trade in the Western Hemisphere.
“From lunch at the U.S. ambassador’s residence to presenting the findings of the report, I feel truly grateful for the opportunity,” Micucci said of the experience. ”It was especially an honor to share a strategic roadmap with some of Argentina’s top decision-makers as the country looks to capitalize on a major window of opportunity.”
In Nyce, Micucci said that he gained a mentor.
“Working with Christopher has been one of the most rewarding experiences of my professional career,” Micucci said. “He has been not only an excellent co-author but he has also consistently encouraged me to push my limits and grow as a researcher, writer and professional.”
