Latin America is at a critical moment in its energy transition.
Despite having abundant natural resources and decarbonization-oriented policies, the region still faces significant barriers to consolidating a sustainable mobility model.
Industry experts analyze the key factors that must be addressed for countries to meet their climate targets and reduce the carbon footprint of transportation.
Charging Infrastructure: A Key Barrier to eMobility Growth
One of the main obstacles to transport electrification in Argentina is the lack of charging infrastructure. Unlike Chile and Brazil, where rapid charging stations have steadily expanded, Argentina’s charging network remains limited.
Andrés Rebolledo, President of OLADE
The energy transition in Latin American countries depends heavily on institutional and even cultural realities, as well as on business perspectives.
Energy planning is a central element, emphasized Andrés Rebolledo, President of the Latin American Energy Organization (OLADE), during his speech at the Future Energy Summit 2025 in Argentina.
Rebolledo stressed the need for a long-term energy strategy that goes beyond national boundaries.
It is also important to note that in Argentina, the Argentine Association of Electric and Alternative Vehicles (AAVEA) announced to Mobility Portal Latin America that, following the loss of parliamentary status of the Electromobility Law project, they will resubmit the proposal to promote sustainable mobility in the country.
“We must always keep in mind that, at some point in history, our countries will be more interconnected than they are today. Therefore, energy planning must always include energy security as an exclusive element,” stated Rebolledo, who served as Chile’s Minister of Energy from 2016 to 2018.
Long-Term Certainty: A Key Success Factor
Rebolledo also pointed out the need for certainty beyond political cycles, stating that “this is the key variable for success.”
Mauricio Bejarano, Vice Minister of Mines and Energy of Paraguay
On the same panel, Mauricio Bejarano, Paraguay’s Vice Minister of Mines and Energy, emphasized that three key factors must be considered to achieve an energy system that is both sustainable and economically accessible:
- Financing
- A political agreement that goes beyond the current government
- Legal harmonization
“These are critical topics that we must address and incorporate more strongly into our discussions because, ultimately, the same applies to electric mobility,” Bejarano stated.
Bejarano also highlighted the high initial investment required for sustainable mobility, comparing it to green hydrogen and electrified engines:
“Hydrogen mobility is 10 to 11 times more expensive than traditional mobility,” he noted.
Costs and Financing: The Need for Incentive Policies in Latin America
The cost of electric vehicles (EVs) remains a major barrier to mass adoption. In Argentina, the lack of tax incentives and accessible financing prevents EVs from competing with internal combustion vehicles.
Countries like Mexico and Colombia have implemented tax benefits and direct subsidies for EV purchases, driving adoption. However, in Argentina, current incentives are limited to tariff exemptions for certain imported models, which is not enough to drive a significant shift.
National Battery Production: A Key Opportunity
Argentina holds one of the world’s largest lithium reserves, a critical mineral for battery production. However, the country has yet to develop a local industry to strategically leverage this resource.
Building a lithium value chain would reduce dependency on imports and lower EV production costs. Moreover, it would position Argentina as a key player in the global energy transition.
