The boom in commodities that we are currently experiencing has caused many developing nations to take a good look at who has ownership and control of critical mineral reserves in their country. The realisation that foreign companies are exploiting and profiting from their natural resources has led to a rise in resource nationalism, especially in Latin America.
Mexico is taking steps towards nationalising their lithium reserves, copper mines are shutting down in Peru, Bolivia has made lithium a state monopoly and Chile is planning to set up a state-owned lithium company.
Short term, this could definitely have an impact on supply. Long term, well that’s anyone’s guess but I don’t think this phenomenon is going away anytime soon. In times of crisis and global turmoil nationalism always sees an increase as people cling ever tighter to their own tribe.
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