The Geopolitical Stakes of Peru’s Lithium and Port Ambitions

Abstract

The Falchani lithium project assets in Puno, southeastern Peru, constitute the world's sixth-largest hard-rock lithium deposit. According to the NI 43-101 report updated by Lithium Americas in October 2023, the exploration reserves of this lithium mine have shown an "explosive growth" of 476% compared to the estimate in March 2019. This discovery means Peru can play a more important role in the future green energy revolution. In 2024, the completion of the Chancay Port marked Peru's transition from a "resource exporting country" to a "key node in the global supply chain". This transformation is not an isolated event: driven by the dual forces of global energy transition and supply chain restructuring, Peru's lithium resources and port infrastructure have become new battlefields for great-power games. This article systematically analyzes how Peru positions itself in the wave of the green economy from four dimensions—geological endowments, industrial ecology, geopolitical competition, and governance challenges—and the deep-seated contradictions between its "development dividends" and "sovereignty concession".