Bolivia signed a $1 billion agreement with China’s CBC to develop two lithium carbonate production plants in Uyuni, significantly advancing its lithium extraction capacity. President Luis Arce highlighted the potential for Bolivia to influence global lithium pricing. This deal follows a previous $970 million agreement with Russia for lithium extraction, pending parliamentary approval.
On November 27, 2024, Bolivia announced the signing of a significant $1 billion agreement with China’s CBC, a subsidiary of Contemporary Amperex Technology Co., Limited (CATL), the world’s leading lithium battery manufacturer. This investment aims to construct two lithium carbonate production plants located within the expansive Uyuni salt flats in southwestern Bolivia. The first plant is expected to have an annual production capacity of 10,000 tons, while the second will produce 25,000 tons of lithium carbonate.
Lithium, often referred to as “white gold,” is essential in the production of batteries for electric vehicles and portable electronic devices, of which Bolivia boasts the largest global deposits. President Luis Arce remarked that this pact positions Bolivia as a significant contender in influencing international lithium prices. Furthermore, this deal follows a previous agreement struck with Russia’s Uranium One Group to develop a $970 million lithium extraction facility. Both agreements await parliamentary approval in Bolivia. Additionally, President Arce indicated ongoing negotiations with China’s CITIC Guoan Group regarding a potential third contract.
Bolivia’s lithium deposits are considered among the most substantial in the world, making the nation a key player in the emerging market of lithium production. The global demand for lithium has surged due to the increasing popularity of electric vehicles and renewable energy technologies. In response, Bolivia is strategically partnering with foreign entities to develop its lithium resources. The investments from China and Russia represent significant steps toward enhancing Bolivia’s lithium extraction and production capabilities, with ongoing partnerships expected to further bolster its position in the global market.
In summary, Bolivia is taking crucial steps to capitalize on its vast lithium resources through international collaborations, particularly with Chinese companies. The recent $1 billion agreement signifies a notable advancement in establishing production facilities that could potentially transform Bolivia’s role in the global lithium market. As these initiatives develop, they may position the country as a major contributor to the supply of lithium necessary for future energy solutions.
Original Source: jordantimes.com
