Bolivia Signs $1 Billion Lithium Deal with China to Boost Production
Bolivia has secured a $1 billion agreement with China’s CBC to establish two lithium carbonate production plants in Uyuni. This follows another agreement with Russia’s Uranium One Group for a lithium extraction facility. President Luis Arce emphasized that these developments position Bolivia as a key player in the global lithium market, seeking further contracts with Chinese firms.
On November 27, 2024, Bolivia announced that it has formalized a significant $1 billion agreement with China’s CBC, a subsidiary of CATL, which is recognized as the largest lithium battery manufacturer globally. This strategic partnership involves the construction of two lithium carbonate production facilities located in the Uyuni salt flats, with one plant expected to produce 10,000 tons annually and the other 25,000 tons. Bolivia is asserting its position in the lithium market, claiming it possesses the largest known lithium reserves worldwide, a resource critical for the production of batteries utilized in electric vehicles and portable electronic devices.
Lithium has garnered the moniker “white gold” due to its essential role in modern technology, particularly in the explosive growth of electric vehicles and portable electronics. Bolivia aims to leverage its vast lithium resources to assert influence over global lithium pricing. The government, under President Luis Arce, views these deals as pivotal to boosting national profits from lithium production. The partnership with China’s CBC follows a previous agreement with Russia’s Uranium One Group, which underscores Bolivia’s efforts to establish a robust framework for lithium extraction and production.
In summary, Bolivia’s $1 billion deal with China’s CBC represents a pivotal step in the South American nation’s ambition to dominate the lithium market. The establishment of two new lithium carbonate plants will not only enhance Bolivia’s production capacity but also strengthen its influence on global lithium pricing. As negotiations progress for further contracts with Chinese companies, Bolivia is strategically positioning itself within the growing electric vehicle supply chain, potentially reshaping its economic landscape.
Original Source: jordantimes.com
