FONDECYT 11241196

ABSTRACT:

Lithium is a non-metallic mineral found in high concentrations in certain countries, with Chile, Argentina, and Bolivia holding the largest reserves in Latin America and being some of the primary global exporters, collectively known as the "lithium triangle" (Gonzalez & Snyder, 2020). While lithium has a range of industrial applications, its demand has surged exponentially in recent years due to its use in the technology sector (Zícari et al., 2019). This mineral is a critical component in the lithium-ion battery value chain, which stores energy from renewable sources. Consequently, lithium has become a strategic mineral internationally for electromobility and energy transition processes essential for addressing climate change (Bos & Forget, 2021; Bridge & Faigen, 2022). For exporting countries, lithium also represents an opportunity to advance toward new development models that integrate socio-environmental and technological dimensions alongside economic growth (Kazimierski, 2018). Lithium embodies both global and national expectations, which intertwine in the development of strategies shaping the growth regimes of these countries (Baccaro & Pontusson, 2016).
 

In this context, Chile presents a case of particular interest for analysis from a political science perspective. Recently, this Latin American country has sought to develop industrialization policies to add value to its lithium production processes domestically. Despite various strategies, these efforts have largely failed to advance the value chain, revealing several obstacles to articulating new green growth strategies (Nahm, 2021). While research on the industrialization processes of countries often focuses on the technological factors that enable them (Mazzucato, 2011), less attention has been paid to the political-institutional factors that shape industrialization policies and their effective implementation (Rodrik, 2014). These factors have proven crucial in transforming economic models based on raw material exploitation in other contexts (Schorr & Damonte, 2021a). Therefore, the general objective of this research is to explain how state capacity impacts the design and implementation of lithium public policies aimed at adding value to the mineral production process in Chile. Specific objectives include analyzing the level of state capacity in Chile for designing and implementing lithium public policies to add value to the production process; establishing the relationship between state-developed capacities and the configurations of public policies related to lithium; and identifying the role of entrepreneurs in relation to state-established policies.

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To achieve this, the project proposes a qualitative case study methodology that offers an in-depth analysis of lithium policies in Chile. The methodology is supported by extensive empirical evidence gathered from various sources: systematic press reviews, analysis of legal and governmental documents, and interviews with key actors selected through purposive sampling. Employing these techniques allows for triangulating available information, leading to analyses with a high degree of internal validity—an essential component of qualitative research. The approach is tested through an in-depth analysis of the Chilean case, across different governmental periods, thereby strengthening the results obtained.

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Based on preliminary theoretical and empirical reviews, the expected outcomes are as follows. First, the narratives surrounding lithium have promoted its industrialization (Barandiarán, 2019). In this context, it is argued that Chile has developed state capacities specifically within the productive sector, favoring an industrialization-oriented design of lithium policy. However, business opposition to industrialization undermines this capacity, leading to implementation failures and marginal results in value addition. Finally, the overarching theoretical framework, and where this research contributes, pertains to the institutional pathways that promote the establishment of new green development models and the actor coalitions that make them possible (Hassel et al., 2020).