From the lithium triangle to Ghana: State participation, industrial policy, and the governance of critical minerals in developing countries

As global demand for lithium increases, emerging economies with lithium deposits face a governance dilemma: should the development of these resources be left to private firms, or should the state intervene to capture a greater share of the benefits? In Ghana, this debate has intensified following the recent discovery of lithium. This study draws lessons from Bolivia, Chile and Argentina to inform Ghana's governance trajectory. These countries were selected because they represent contrasting models of state participation in lithium development: Bolivia has pursued a nationalist approach centred on state control, Chile a hybrid model combining state ownership with private-sector production, and Argentina a more liberal approach emphasising foreign investment. The governance choices examined here speak to a broader earth system governance challenge: how to ensure that the institutions underpinning the global energy transition distribute its benefits and burdens equitably, including for communities and countries on the extractive frontier.