National Resource Control in Latin America: Shifting Dynamics of Lithium and Mineral Reserves amidst Rising Commodity Prices

Abstract

Latin America has become a prominent producer of lithium, a crucial metal for electric vehicle batteries and clean energy technologies. The region possesses a significant share of the world’s lithium reserves, attracting attention from global stakeholders. However, governments in Latin America are asserting greater control over the mineral’s industry. Chile plans to establish a state-owned enterprise for lithium production, potentially requiring private companies to form joint ventures with the government. Argentina, Bolivia, Brazil, and Chile are engaged in discussions regarding the creation of a lithium OPEC-like organization aimed at controlling global prices. Bolivia already exercises near-complete control over its lithium industry. These developments reflect a trend of increased government control over strategic mineral resources with implications for the global supply chain of lithium and clean energy transitions.