Partnership Without Stakes? Rethinking EU Leverage in Latin America’s Lithium Sector

• The EU’s lithium strategy in Latin America is strong in diplomacy but weak in investment. • Across the lithium global value chain, Europe is losing influence in terms of establishing efficient policy frameworks and ownership structures. • Sustainability and ESG standards, without parallel investment and risk-sharing, are perceived by lithium stakeholders in Latin America as compliance burdens rather than partnership incentives. • The EU can only achieve its goal of strategic autonomy by transforming its role from that of a standard-setter to that of a cooperative investor in key ‘green’ industries. Against this background, cooperation with Latin American partners requires that European instruments be more closely aligned with their industrial development strategies.