
the Chilean government confirmed a report published earlier that morning: Chinese companies BYD and Yongqing Technology (Tsingshan Group) had abandoned their planned lithium cathode production facilities in Chile. This announcement dealt a significant blow to the ambitions of a country with a longstanding mining tradition, now striving to build industrial capabilities and develop value-added products from its mineral resources amid the global energy transition. However, just one day later, the Chinese embassy in Chile both the initial report and the Chilean government’s confirmation. After consultations with both companies, the embassy clarified that neither had officially withdrawn their investment plans. Instead, they reaffirmed ongoing interest in maintaining dialogue with Chilean authorities. The embassy further emphasized Chile’s continuing attractiveness to Chinese businesses, highlighting the numerous firms eager to participate in the country’s National Lithium Strategy. the Chinese embassy’s statement—issued amidst escalating trade tensions and shifts in the international order—suggests this chapter is far from concluded.
This episode highlights the complexity and uncertainty confronting peripheral economies attempting to industrialize by leveraging their comparative advantages amidst the so-called energy transition and broader geopolitical tensions marked by trade wars. While significant global attention remains focused on the socio-environmental impacts of critical mineral extraction, less consideration has been given to examining how peripheral economies—countries heavily reliant on natural resource extraction—are strategically navigating or capitalizing on this “critical minerals moment” in relation to their own ambitions to industrialize.
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