From minerals to megawatts: understanding Chinese involvement in Latin America’s renewable energy value chain

Abstract

This paper maps and explains how Chinese firms engage across the renewable energy value chain in four South American countries: Argentina, Chile, Colombia, and Peru. As part of the regional project Capitalizing on the New Climate Economy in the Americas we compiled a database with project-level data on ownership, engineering, procurement and construction (EPC), financing and timelines, covering minerals, power generation, grids, and selected end-uses. It is the first integrated database of its kind on Chinese roles along the renewable energy value chain in South America. Using this database, the paper offers direct comparisons of Chinese participation and highlights where local value is captured or not, citing three key patterns; (1) Chinese involvement is widespread but uneven, firms having a strong presence in mineral extraction and the energy sector, but absent from local manufacturing of renewable energy equipment; (2) participation patterns follow host-country endowments and policy frameworks: Peru and Colombia attract Chinese investments in copper mining, while Argentina and Chile focus on lithium, and (3) financing has transitioned from an early dominance by policy banks to a more diverse mix of mergers and acquisitions, commercial lending, and project-level partnerships. The paper provides a framework for identifying value capture and technology dependencies, ultimately clarifying China’s international footprint in South America’s energy transition.