Chile is executing a sharp policy reversal under incoming President José Antonio Kast, who is set to be sworn in on Wednesday and who plans to use its first full day in office to sign broad agreements with the US on critical minerals and security, pulling the copper- and lithium-rich country closer to President Donald Trump’s hemispheric agenda.
Kast, 60, replaces Gabriel Boric after winning the December 2025 runoff with 58% of the vote against Jeannette Jara’s 42%, capping a campaign built around crime, border control, deregulation and a “make Chile great again” message that drew immediate comparisons with Trump and was read by markets and diplomats as a clear pro-business turn.
Chile produces roughly a quarter of global copper supply, mining contributes about 15% of GDP, and the country generates more than half of export revenue from the sector. Chile is also the world’s second-largest lithium producer and holds about 40% of global lithium reserves.
That makes the planned US agreements more than symbolism. Washington is trying to reduce dependence on China across critical-minerals supply chains. The Trump administration has already been expanding critical-minerals diplomacy through multilateral and bilateral arrangements, while concern over Chile’s ties to China has intensified ahead of Kast’s inauguration.
Chile’s election campaign had already turned into a referendum on how much state control should retain over strategic resources. State copper giant Codelco carries more than $20 billion in debt, its output had previously fallen to a 25-year low in 2022, and the government’s rule requiring the company to transfer 70% of profits to the state has constrained reinvestment.
Under Boric, Chile moved toward greater state involvement in lithium, with plans to negotiate state stakes in operations before existing Atacama contracts expire in 2030 for Sociedad Química y Minera de Chile and 2043 for Albemarle Corporation.
The timing also intersects with a permitting overhaul already in motion. Chile approved the Framework Law for Sectoral Authorizations in July 2025, aiming to cut mining and energy permit times by 30% to 70% through a centralized digital system.
Kast’s law-and-order platform resonated strongly in northern regions such as Antofagasta and Tarapacá, where copper and lithium production is concentrated and where crime, migration and infrastructure protection have become more visible operating concerns. Folding security cooperation into the first US agreements suggests Santiago wants to reassure both voters and investors that mining competitiveness now includes state capacity, border control and asset stability.
For copper and lithium investors, the practical read-through is a friendlier operating climate but not a frictionless one. Kast enters office without an absolute congressional majority, and analysts have cautioned that coalition management will shape how far he can move on privatization, spending cuts and regulatory redesign.
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