Models of lithium exploitation in Latin America: Is history repeating itself?

Lithium is among the minerals most demanded for use in driving the energy transition of the global north. However, 61.5 % of world reserves are located in Argentina, Bolivia, and Chile. Based on an Institutional Political Economy approach, the first objective of this paper is to characterize the lithium exploitation models of each country based on analysis of the actors and regimes that configure them. Second, this paper evaluates whether the three countries are applying exploitation models distinct from the (neo)extractivist model, identifying the most decisive regimes and configurations of actors.

The analysis identifies measures that partially diverge from the (neo)extractivist model in Chile and Bolivia. In these cases, the State has played a crucial role in transforming the rules of the game and gradually paving the way for an industrialization agenda based on lithium. In contrast, Argentina shows a greater degree of subordination to transnational capital. Nevertheless, due to the reliance on demand from the Global North, mineral exploitation appears to perpetuate the primary-export model, thereby maintaining center-periphery development patterns. Despite the implementation of supply-side strategies, the absence of a domestic market for electric vehicles represents a structural limitation for these three countries in effectively advancing their own transition processes.