Trajectories of Mineral Policy under the Energy Transition: Global Production Networks and the Extractivist State in South America

The energy transition is manifesting in South America in a distinctive manner. While the global imperative to reduce emissions remains a significant concern, states in the region are particularly focused on capitalizing on the global demand for critical minerals essential for low-carbon technology production. The diverse imaginaries, discourses, and initiatives aimed at enhancing and redefining the positions of South American countries within the international division of labor compel us to critically examine the strategies and objectives of these states as they engage with the multifaceted landscape of low-carbon technology production networks. This chapter critically evaluates the industrial policies pursued by Peru, Chile, Bolivia, and Argentina during the energy transition, focusing on their efforts to capture rents or promote industrial development in the extraction of copper and lithium. Notably, despite its relevance to the energy transition, copper has remained relatively obscured from public discourse, with only specific policies developed by the state-owned CODELCO in Chile. In contrast, the novelty of lithium extraction has ignited political debates and spurred industrial policy considerations regarding the most strategic approach to its exploitation. To elucidate this intricate landscape of continuity and change in the aforementioned cases, this chapter posits that it is imperative not only to consider the dynamic global production networks of low-carbon technologies but also to delve into the historical evolution of mineral policies within states where significant resource extraction plays a pivotal role.