Increased state control of Chile's lithium sector may lead to a mechanism for new investment, but higher associated costs could limit investor interest. On April 20, Chilean President Gabriel Boric announced that he would seek to "nationalize the country's lithium industry" through a proposed "National Lithium Strategy." This strategy would require all new lithium contracts to be public-private partnerships in which the state has majority control over mining. However, the strategy does not include any immediate expropriation of assets; instead, it would simply let private companies' existing lithium mining contracts expire, which would mitigate the short-term impact of the new strategy on the country's lithium output. The proposed National Lithium Strategy also stipulates that Chile, via its state-owned mining companies, would be able to exercise veto powers over key decisions related to lithium exploration and extraction. The government also charged state-owned copper companies Codelco and Enami with developing lithium on...
