Bolivia announced a $1bn agreement with China’s CBC to build two lithium carbonate plants on the Uyuni salt flats.
CBC is a subsidiary of battery giant CATL. With the deal, Bolivia, which has struggled to develop its huge reserves, will increase its profile in the global lithium market. Meanwhile, Bolivia’s state-owned company YLB will retain a 51% stake in the project, ensuring that the country retains control of its resources.
The plants, which are expected to produce a total of 35,000 metric tonnes of lithium per year, will use advanced direct lithium extraction (DLE) technology. It enables faster and more environmentally friendly production.
President Luis Arce called the deal a milestone on Bolivia’s path to leadership in the lithium industry. However, the move requires parliamentary approval, and Bolivia’s fractured legislature could stall progress, especially with elections looming in 2025.
The deal follows a $976m agreement signed earlier this year with Russia’s Uranium One Group, which is owned by Rosatom. The Russian partnership aims to produce 14,000 tonnes of lithium annually.
Last year, Uranium One, along with CBC and Citic Guoan Group, was selected to establish pilot DLE plants in Bolivia. The country’s government set a target of exporting 50,000 tonnes of lithium carbonate equivalent per year.
Bolivia’s standing as the country with the world’s largest lithium reserves, estimated at 23 million tonnes, has long been seen as an untapped opportunity. Despite that advantage, the country lags behind neighbours Chile and Argentina in production. Since the 1990s, Bolivia has struggled to develop its industry, hampered by red tape and logistical obstacles.
