Bolivia Secures $1 Billion Lithium Deal with China
Bolivia has signed a $1 billion agreement with China’s CBC to build two lithium carbonate plants, leveraging its vast lithium deposits. This deal positions Bolivia to influence global lithium pricing, following a prior agreement with Russia. Further negotiations with Citic Guoan Group are also in progress.
Bolivia has entered into a significant agreement worth $1 billion with China’s CBC, a subsidiary of CATL, the world’s foremost lithium battery manufacturer. This partnership is aimed at establishing two lithium carbonate production facilities in Bolivia’s southwestern region. This initiative underscores Bolivia’s position as a major player in the global lithium market, given its claim of possessing the largest lithium deposits in the world. President Luis Arce asserted that this agreement positions Bolivia strategically in international lithium pricing mechanisms.
Lithium has become increasingly essential in the production of batteries for electric vehicles and consumer electronics, often referred to as “white gold” due to its skyrocketing demand. Bolivia’s substantial lithium reserves represent a significant opportunity for economic growth and energy transition in the region. Previously, Bolivia had an agreement with Russia’s Uranium One Group to invest $970 million in a lithium extraction facility, indicating a growing interest in tapping into its mineral wealth. Arce also mentioned ongoing negotiations with China’s Citic Guoan Group for an additional contract, highlighting Bolivia’s active engagement in the global lithium supply chain.
In conclusion, Bolivia’s $1 billion partnership with China’s CBC marks a pivotal step toward enhancing its lithium production capabilities, vital for the burgeoning electric vehicle and technology markets. As this agreement moves forward, pending parliamentary approval, Bolivia is poised to play a crucial role in establishing international lithium prices, potentially turning its vast reserves into a cornerstone of its economic strategy.
Original Source: news.az
