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The green revolution will stall without Latin America’s lithium

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Summary

The article discusses the increased resource nationalism in Latin America, where countries are taking back control of their resources to benefit from the green transition. It examines the reasons behind this shift, such as increasing the state’s revenues and economic clout, creating more jobs and opportunities for business, and reducing conflict. It also looks at how the wave of resource nationalism has affected investment and the risks associated with it. It further mentions how countries like Chile and Mexico are already seeing tangible signs of the potential bonanza from this green transition, while countries like Bolivia and Argentina are working to develop their resources.

Q&As

What percentage of the world's lithium can be found in Latin America?
Over half of the world's lithium can be found in Latin America.

What percentage of the world's copper and nickel is located in Latin America?
Latin America has two-fifths of the world's copper and a quarter of its nickel.

What are some of the goals behind Latin American governments' push for increased state control of resources?
The goals behind Latin American governments' push for increased state control of resources include increasing the state's revenues and economic clout, creating more jobs and opportunities for business, and reducing conflict.

What are some of the risks of resource nationalism in Latin America?
The risks of resource nationalism in Latin America include a bad track record of nationalisation, lack of access to cutting-edge technology, and reduced capital flows.

How is the green transition in Latin America likely to affect GDP and exports?
The green transition in Latin America is likely to affect GDP and exports by increasing revenues for lithium, copper, cobalt and nickel producers four-fold, and increasing exports of the metal.

AI Comments

👍 I'm impressed by the amount of research and data included in this article. It really offers an in-depth look at the current resource nationalism trend in Latin America.

👎 The article fails to address the negative consequences of resource nationalism, such as the potential for corruption and economic instability.

AI Discussion

Me: It's about Latin American countries taking back control of their natural resources to drive their green revolution. They're creating state-owned companies to produce lithium and reducing the length of concessions for private companies. They're also creating joint ventures with private companies and introducing royalty increases.

Friend: Wow, that's interesting. It could have some significant implications for the green revolution, especially in terms of making sure that the revenue from these resources stays in the local economy and benefits the people. It could also create more jobs and opportunities for businesses, as well as reduce conflict related to extractive projects.

Me: Yes, that's true. But there are also some downsides to resource nationalism. Nationalisation has a bad track record in Latin America, and state firms may not have access to the latest technology that multinational companies typically excel at. Plus, it could lead to a smaller slice of the green transition pie for Latin America if capital flows are reduced due to unstable policies.

Action items

Research the Resource Nationalism Index and its implications for the green revolution.
Analyze the potential economic and social benefits of resource nationalism in Latin America.
Investigate the potential risks of resource nationalism in Latin America, such as the track record of state-run firms in the region.

Technical terms

Lithium: A soft, silver-white metal used in batteries for electric vehicles.
Green Revolution: A period of rapid technological advancement in agriculture, particularly in the developing world, that began in the 1940s.
Nationalise: To transfer ownership of a company or industry from private to public control.
Net-Zero Emissions: A goal of reducing greenhouse gas emissions to zero, or offsetting any remaining emissions with carbon capture and storage.
Resource Nationalism: A policy of increased state control over natural resources, such as minerals, oil, and gas.
Expropriation: The act of taking private property for public use, usually without compensation.
R&D: Research and development, the process of creating new products or services.
Lava Jato: A corruption scandal in Brazil involving the state-owned oil company Petrobras.
Property Rights: The legal right to own, use, and dispose of property.
Jackpot: A large sum of money won in a lottery or other game of chance.
Cutting-Edge Technology: The most advanced technology available.
Bonanza: A sudden, large increase in wealth or resources.