By The Rio Times | Created at 2024-11-27 11:08:02 | Updated at 2024-11-30 04:31:39
2 days ago
Bolivia has taken a significant step towards harnessing its vast lithium resources. The government recently inked a contract worth over $1.03 billion with Chinese consortium CBC. This deal aims to construct two direct lithium extraction (DLE) plants in the Uyuni Salt Flat, located in southwestern Bolivia.
The agreement grants Bolivia a 51% majority stake, with CBC holding the remaining 49%. This structure ensures state control over this strategic resource. The deal marks Bolivia’s second major lithium project using DLE technology, following a similar agreement with Russia’s Uranium One in September.
Omar Alarcón, president of the state-owned Yacimientos de Litio Bolivianos (YLB), provided details about the contract. He explained that it covers the final engineering design, construction, operation, and maintenance of two plants. One plant will produce 10,000 tons of lithium carbonate annually, while the other will yield 25,000 tons of battery-grade lithium carbonate per year.
Bolivia’s Lithium Ambitions: A $1 Billion Deal with Chinese Consortium CBC – Salar de Uyuni, Salt flat in Bolivia. (Photo Internet reproduction)The CBC contract represents a crucial move in Bolivia’s efforts to monetize its lithium reserves. It follows a $970 million deal with Uranium One Group for a plant set to produce 14,000 tons of lithium carbonate yearly. However, both agreements still require congressional approval to proceed.
President Luis Arce faces challenges in securing this approval due to his lack of a parliamentary majority. This situation highlights the complex political landscape surrounding Bolivia’s lithium industry development. The government must navigate these hurdles to fully capitalize on its mineral wealth.
Bolivia’s push to develop its lithium sector reflects a growing global demand for this vital component in electric vehicle batteries. By partnering with international firms, Bolivia aims to overcome technological and financial barriers to lithium extraction. This approach could potentially transform the country’s economy.
