Pinochet’s Shadow: Privatisation in Chile

In April 2023, the left-wing Chilean government led by Gabriel Boric announced its strategy for the lithium industry: a public-private collaboration under the umbrella of a National Lithium Company. Such collaborations are common, allowing the state to combine its strengths with those of the private sector. Chile has one of the largest reserves of lithium in the world and does business with the market’s leading producers. These relations have been shaped for almost half a century by policies implemented by Augusto Pinochet, dictator of Chile 1973-90. As the importance of lithium continues to rise, battle for control of the industry intensifies, and Pinochet’s long shadow continues to loom over the young democracy.

There are many reasons why lithium-related policies might become a cornerstone of countries that hold large reserves. The metal is crucial for smartphones, laptops and electric vehicles. As the world grapples with the urgent need to move away from fossil fuels, lithium-ion batteries have emerged as the frontrunner.