Strategic periphery in the energy–technology transition: critical minerals, dependence, and the conversion of potential power in South America

Abstract

This article examines South America’s position in critical mineral value chains associated with the energy–technology transition. Drawing on international political economy, Latin American structuralism, dependency theories, neo-extractivism, and the resource curse literature, it develops the notion of strategic periphery to explain a central tension: peripheral economies may gain material relevance and potential power without necessarily achieving greater technological, productive, or regulatory autonomy. Building on this theoretical dialogue, the article defines the category through four constitutive conditions—material centrality, systemic criticality, structural asymmetry within the chain, and potential margin for conversion—and operationalizes it through six analytical dimensions. The empirical strategy compares Chile and Argentina within the lithium value chain and contrasts them with Brazil’s magnetic rare earth value chain. The findings reveal distinct trajectories. In Chile, material centrality is translated more clearly into rent capture and governance of extraction; in Argentina, primarily into production expansion and investment attraction; and in Brazil, it remains predominantly potential because of technological and industrial barriers. Strategic periphery therefore designates the gap between material relevance, potential power, and the effective capacity to transform a country’s position within global value chains.