Lithium and development in Argentina: challenges of the multilevel governance system and the relations with China

Abstract

Based on the analysis of the lithium industry in Argentina, the argument of this study is that the external actions of the provinces in the Argentine Northwest (Jujuy, Salta, and Catamarca) have contributed to instrumentalizing part of the foreign policy towards China. At the same time, this linkage has created tensions with the Federal State concerning the lithium development model to be implemented and the relationship with the Asian country. We understand that the connection with China, which is complementary and incremental in nature, highlights pre-existing tensions within the federal system and the obstacles in coordinating and implementing a national strategy for Argentina's international engagement in the lithium sector, as well as defining a national development strategy for the lithium industry. Through a qualitative approach, we address the external conditions impacting the lithium industry in the region and in Argentina, in particular, and how the absence of a national model for lithium industry development promotes an insertion based on exploitation and exportation to major external partners, following a primary pattern.