Bolivia has signed a $1 billion deal with China’s CBC to establish two lithium carbonate production plants in the Uyuni salt flats, aiming for a combined annual output of 35,000 tons. This development highlights Bolivia’s intent to become a significant player in the lithium market, as the country claims to hold the largest lithium deposits globally.
On November 27, 2024, Bolivia announced the signing of a significant $1 billion agreement with China’s CBC, a subsidiary of the leading lithium battery producer, CATL. This partnership aims to construct two lithium carbonate production facilities in the southwest region, specifically located in the expansive Uyuni salt flats. The proposed plants will produce 10,000 and 25,000 tons of lithium carbonate annually, a crucial material for electric vehicle batteries and mobile phones. President Luis Arce emphasized Bolivia’s potential to influence global lithium pricing significantly as they claim to possess the largest lithium reserves in the world. This development follows a prior agreement with Russia’s Uranium One Group for a $970 million lithium extraction project, also in Uyuni, pending parliamentary approval.
Lithium, often referred to as “white gold,” has gained immense significance in the current global market primarily due to its essential role in the manufacturing of batteries for electric vehicles (EVs) and consumer electronics. Bolivia, which boasts extensive lithium reserves, is increasingly positioning itself as a critical supplier to meet the growing demand in the EV sector. The agreements with foreign entities, such as the recent deal with China’s CBC and a previous arrangement with Russia’s Uranium One Group, indicate a strategic move towards harnessing these resources for economic growth and international market influence.
In summary, Bolivia’s recent agreement with CBC to build lithium production plants marks a pivotal step in its efforts to leverage its substantial lithium reserves into an influential position within the global market. Coupled with the ongoing discussions for further contracts, Bolivia is ambitiously aiming to become a leader in lithium production, thus impacting the international pricing landscape of this crucial resource.
Original Source: jordantimes.com
