Adversaries in the Altiplano: Strategic Competition in South America's Lithium Triangle

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Abstract:

This thesis explores the opportunities and risks facing the United States given the PRC's involvement in South America's lithium supply chains. By conducting a series of SWOT analyses, the work analyzes the lithium resources and economic and political institutions in Argentina, Bolivia, and Chile, followed by the potential opportunities and threats posed by each of the two superpowers. The study is focused on the lithium triangle due to the unique composition of the region's vast lithium deposits and untapped potential. The results demonstrate that all three countries are viable options for investment, but the US government must set the conditions for American investors due to the uncertainty associated with each country's political and economic situation. The study posits that the US government must develop and employ a comprehensive strategy for the Western Hemisphere that includes planned engagement with the lithium triangle to increase lithium extraction, decrease supply chain bottle necks, and contribute to local development. In addition, the author advocates for an industrial policy that fortifies America's global supply chains through targeted, low interest-rate financing and the employment of loan guarantees.

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