Peru is looking to Australian companies for hundreds of millions of dollars for critical mineral investment with 51 projects having a combined $US55 billion revenue potential in the pipeline to 2035.
Peru's Energy Minister Romulo Mucho says China has $US25 billion ($A38 billion) invested in the South American country's mining and critical minerals sector, accounting for almost 30 per cent, but he doesn't want an over-reliance as Beijing targets Latin American markets.
"We're working to diversify ... to Australia, to other countries," he told AAP on Tuesday.
China has large holdings in major Peruvian mining projects and a Chinese state-owned company also has a controlling stake in the Chancay port, near Lima, which Peru is spruiking as a new gateway between South America and Asia.
Mr Mucho is meeting with Australian Resources Minister Madeleine King at a major mining conference in Sydney as well as CEOs and executives from Australian mining and resource giants.
"We are starting to develop mining supplies (and) technology, but we have huge potential to increase," he said.
Australia's mining equipment, technology and services (METS) sector was a key productivity driver and Latin America was "one of the most important markets for Australian METS companies", a spokesperson for Ms King told AAP.
"It's important that Peru positions itself to benefit from the global shift towards green technologies, having such rich resources in transition minerals such as copper, iron, lead, molybdenum, silver, zinc, indium and graphite," they said.
China views Latin America as a rich source of lithium, copper, graphite, cobalt and nickel, as demand for critical minerals increases due to the pivotal role they play in renewable energy technology such as batteries and electric vehicles.
It's the top export destination for Brazilian, Chilean, Panamanian and Peruvian minerals, according to think tank Centre for Strategic and International Studies.
Beijing was diversifying critical mineral supply and while rich in rare earths, it was shoring up partnerships with friendlier nations such as Indonesia for nickel and Africa, particularly Guinea, for iron ore, China energy expert Jorrit Gosens said.
It comes as the United States is pushing partner nations to spread risk away from China to avoid susceptibility to economic coercion as the world transitions to net-zero and clean energy technology.
