This chapter delves into the state capacity that have been developed in Chile regarding lithium policy, with a focus on administrative, political, and institutional frameworks. It begins by exploring the legal context surrounding lithium extraction, tracing its regulatory history from the Pinochet dictatorship to the present. Central to this analysis is the role of the Chilean Nuclear Energy Commission (CCHEN) and CORFO, which holds key lithium mining rights and oversees partnerships with private companies such as SQM and Albemarle. The chapter then examines the evolution of political capacities, highlighting the discourse surrounding lithium industrialization, the actors involved, and how these narratives have influenced policy. Lastly, it explores the development of administrative capacities, including the establishment of a coalition of political and social actors, the role of expert committees, and the creation of an institutional framework to manage lithium policy. This analysis demonstrates how state–business relations have shaped Chile’s selective industrial policies and the strategic role of lithium in its development trajectory.