Resource nationalism is on the rise. As commodity prices climb, governments are clamouring for a bigger piece of the pie. Chile is the latest to exert more control over key resources. This week, president Gabriel Boric unveiled plans to nationalise the country’s vast lithium industry.

The plan, which still needs to be approved by lawmakers, will not affect existing lithium mining contracts. These are held by two companies, Albemarle and Sociedad Química y Minera de Chile, or SQM. Both of their shares fell sharply in response. Future contracts will only be issued as public-private partnerships, with the state taking majority control.

Boric will need to tread carefully, lest he risk killing Chile’s golden goose. The country has the world’s third-largest lithium reserves at about 11mn tonnes, behind Bolivia and Argentina. SQM claims that under current arrangements it already pays two-thirds of its gross profits to the Chilean government.