Bolivia has signed a $1 billion deal with China’s CBC to establish two lithium carbonate plants in Uyuni, which will enhance its lithium production capacity. President Luis Arce highlighted Bolivia’s potential role in influencing global lithium prices, following another agreement with a Russian firm. Both deals await parliamentary approval.
On Tuesday, the Bolivian government announced a significant $1 billion agreement with China’s CBC, a subsidiary of the leading lithium battery producer, CATL. This partnership aims to establish two lithium carbonate production facilities in the southwest region of Bolivia, particularly within the extensive Uyuni salt flats. These plants are projected to produce 10,000 tons and 25,000 tons of lithium carbonate annually, respectively.
Lithium, often referred to as “white gold,” is essential for manufacturing batteries used in electric vehicles and mobile devices. Bolivia is proud to possess the world’s largest lithium reserves, and President Luis Arce emphasized that this deal positions Bolivia as a pivotal player in the global lithium market, potentially influencing international pricing.
This agreement follows a prior arrangement with Russia’s Uranium One Group to develop a $970 million lithium extraction facility in Uyuni, both of which still await parliamentary approval. Additionally, President Arce revealed ongoing negotiations with China’s Citic Guoan Group for a third contract, expressing hope for a swift resolution of these discussions.
The announcement of this agreement comes at a time when the global demand for lithium is surging, driven largely by the increasing production of electric vehicles and renewable energy storage solutions. Bolivia, possessing extensive lithium resources in the Uyuni salt flats, seeks to capitalize on this demand to boost its economy and solidify its position in the international market. Previous collaborations with foreign entities reflect Bolivia’s strategy to develop its lithium sector while ensuring local involvement through state-owned enterprises.
In summary, Bolivia’s recent $1 billion deal with China’s CBC marks a critical step toward enhancing its lithium production capabilities, with the potential to influence global lithium pricing. As the nation awaits parliamentary approval for this and previous agreements, the strategic development of its lithium deposits may significantly impact its economic landscape and role in the global market for battery materials.
Original Source: www.france24.com
