Bolivia has signed a $1 billion agreement with China’s CBC to build two lithium carbonate plants in Uyuni, enhancing its position in the global lithium market. President Luis Arce stated it could influence international lithium prices. A $970 million deal with Russia’s Uranium One is also pending approval, with further negotiations ongoing with China’s Citic Guoan Group.
Bolivia has entered into a significant agreement with China’s CBC, a subsidiary of the leading lithium battery producer CATL, to develop two lithium carbonate production facilities in the southern region of the country. The Bolivian state-owned entity, Bolivia Lithium Deposits (YLB), revealed that one plant will have an annual production capacity of 10,000 tons, while the other will produce 25,000 tons. Both facilities are set to be located in the expansive Uyuni salt flats, known for their extensive lithium reserves.
The strategic importance of lithium, often referred to as “white gold,” lies in its role as a vital component in the manufacturing of batteries for electric vehicles and mobile devices. Bolivia boasts what is claimed to be the largest lithium deposits in the world. During the signing ceremony, President Luis Arce emphasized that this partnership positions Bolivia as a pivotal player in influencing global lithium prices. Following this deal, an existing agreement with Russia’s Uranium One Group to establish a $970 million lithium extraction facility in Uyuni is currently pending parliamentary approval. Additionally, negotiations are in progress with China’s Citic Guoan Group for a further agreement, which President Arce hopes to finalize soon.
Bolivia is increasingly focusing on developing its lithium resources in response to the global demand for electric vehicle batteries and other lithium-ion applications. The Uyuni salt flats, recognized for their vast lithium reserves, present a unique opportunity for the country to capitalize on the growing market for sustainable energy. The deals with notable international partners indicate Bolivia’s ambition to position itself strategically within the global supply chain for lithium, which is essential for various high-demand technologies. The potential to influence lithium pricing on the international stage underscores Bolivia’s aspirations in the global minerals market.
In summary, Bolivia’s recent $1 billion partnership with China’s CBC to construct lithium carbonate production plants marks a substantial step forward in the country’s mining sector. These developments reflect Bolivia’s efforts to harness its lithium reserves, potentially altering the dynamics of the international lithium market. With ongoing negotiations for further contracts and existing agreements requiring parliamentary approval, Bolivia’s commitment to becoming a significant player in the lithium industry is evident.
Original Source: www.france24.com
