Bolivia has signed a $1 billion deal with China’s CBC to construct two lithium carbonate production plants, underscoring its ambitions in the lithium market, given its vast reserves. This agreement follows a previous contract with a Russian firm aimed at lithium extraction, both of which await parliamentary approval. President Arce also mentioned ongoing negotiations with Citic Guoan Group for further collaboration.
On Tuesday, Bolivia formalized a significant $1 billion agreement with China’s CBC, a subsidiary of the renowned lithium battery manufacturer CATL, to establish two lithium carbonate production facilities in the southwestern region of the country. This venture positions Bolivia to leverage its substantial lithium reserves, which are deemed the largest globally, raising expectations for a substantial role in the international lithium market. President Luis Arce highlighted that this collaboration is a crucial step towards Bolivia becoming a pivotal entity in setting lithium prices internationally.
This recent partnership builds on a prior agreement between Bolivia’s state-owned Yacimientos de Litio Boliviano (YLB) and Russia’s Uranium One Group, which aims to develop a $970 million lithium extraction plant in Uyuni. Both projects are pending approval from Bolivia’s legislative body. President Arce also indicated that discussions are progressing with China’s Citic Guoan Group for an additional contract, expressing optimism for a swift conclusion to these negotiations.
Bolivia is situated over a portion of the lithium-rich salt flats, specifically the Salar de Uyuni, which is believed to house the largest known lithium reserves in the world. As demand for lithium surges, propelled by its essential role in battery production for electric vehicles and consumer electronics, Bolivia is strategically positioning itself as a significant player in this booming sector. The government aims to capitalize on these resources to not only boost national revenue but also enhance its geopolitical stature in the global energy transition.
In conclusion, the $1 billion deal with China represents a crucial advancement for Bolivia’s aspirations in the lithium market. With the world’s largest lithium deposits at its disposal, Bolivia is poised to play a central role in the global supply chain of electric vehicle batteries. Furthermore, ongoing negotiations for additional partnerships underscore the country’s commitment to maximizing its lithium potential and setting the stage for a robust economic future.
Original Source: news.az
