Chile’s role in the global energy transition: critical minerals, geopolitics and socioenvironmental challenges

Abstract

Background

The global energy transition relies on the availability of critical minerals, a significant proportion of which are found in Latin America. This raises important questions about the dependency experienced by mineral-producing countries in the region and its implications for global geopolitical power. This study, based on dependency theory, focuses on Chile. As a major global producer of critical minerals, Chile is an ideal case for investigating the interplay between mineral exploitation, the development and deployment of renewable energy, socioenvironmental conflicts and economic imbalances. An interdisciplinary, mixed-methods approach combining qualitative and quantitative analyses examines Chile’s economic structure, its position in the international arena and the socioenvironmental implications of mineral extraction.

Results

The findings reveal an inherent paradox of the energy transition. The primary goal is to promote decarbonisation, mitigate climate change and transition to sustainable socioenvironmental practices. However, under the current patterns of the global economy, this process risks exacerbating local socioenvironmental issues in countries that produce minerals. Furthermore, it may fail to generate substantial economic value within clean technology-related supply chains in peripheral regions. The role of peripheral regions tends to be limited to supplying critical minerals for the production of technology in core economies. Resource-exporting nations face intricate trade-offs as key players in the energy transition due to their unequal socioenvironmental, economic and technological contexts.

Conclusions

Copper extraction plays a central role in the Chilean economy. The energy transition has triggered an increase in mining activities, which could pose new significant socioenvironmental risks and perpetuate technological disparities between core and peripheral countries. To address these challenges, long-term policies must focus on diversifying the Chilean economy, strengthening the cleantech production chain and improving governance. Collaborating with other countries at a regional level could accelerate Chile’s technological progress.