Bolivia has entered into a $1 billion agreement with China’s CBC to establish two lithium carbonate plants in the Uyuni salt flats. The plants will have capacities of 10,000 tons and 25,000 tons annually. This deal is part of Bolivia’s broader strategy to enhance its position in the global lithium market, following prior agreements with other international entities.
On November 27, 2024, Bolivia announced the signing of a significant $1 billion partnership with China’s CBC, a subsidiary of the renowned lithium battery manufacturer CATL. This agreement entails the construction of two lithium carbonate production facilities located within the expansive Uyuni salt flats in southwestern Bolivia. The proposed plants are projected to possess an annual production capacity of 10,000 tons and 25,000 tons, respectively. President Luis Arce highlighted the importance of this initiative for Bolivia’s strategic positioning in the global lithium market, referring to lithium as “white gold” due to its vital role in manufacturing batteries for electric vehicles and consumer electronics.
Bolivia is recognized for having the largest lithium reserves globally, making it a pivotal player in the burgeoning electric vehicle market. Lithium is essential for battery production, which has seen a surge in demand amid the global shift towards sustainable energy solutions. The recent agreement with China follows a prior arrangement with Russian interests in lithium extraction, showcasing Bolivia’s increasing involvement in international mining agreements aimed at capitalizing on its rich mineral resources. The Bolivian government, under President Arce, is actively pursuing partnerships to enhance its lithium production capabilities and influence global lithium pricing.
The recent $1 billion deal between Bolivia and China’s CBC marks an important development in the global lithium market, positioning Bolivia as a potential leader in lithium carbonate production. With significant production capabilities outlined and additional negotiations underway, the Bolivian government aims to ensure its dominance in this critical sector. If these agreements receive parliamentary approval, Bolivia’s strategic role in the burgeoning electric vehicle industry could greatly enhance its economic landscape.
Original Source: jordantimes.com
