This chapter delves into the intricate relationship between the state and business actors in shaping green industrial policy (GIP), particularly in the context of lithium production. Building on the previous chapter’s theoretical foundation, it offers a detailed framework to operationalize state–business dynamics. It explores state capacity, identifying key dimensions—political, legal–institutional, and administrative—as vital components for implementing industrial policies. Additionally, the chapter examines the power resources and preferences of business actors and how they influence public policy. The analysis reveals how the interaction between these two sets of actors shapes policy outcomes, offering a relational view of state capacity. Business actors’ power, preferences, and strategies are mapped against the state's institutional ability to coordinate and implement policies. This framework provides a comprehensive approach to understanding GIP in developing economies, especially in the context of the energy transition and industrial development in Latin America.