Bolivia signed a $1 billion deal with China’s CBC to establish lithium carbonate plants in Uyuni. This positions Bolivia as a crucial player in the global lithium sector. Further negotiations for additional contracts are underway, expanding Bolivia’s proactive approach in leveraging its vast lithium resources.
Bolivia announced on November 27, 2024, the signing of a substantial $1 billion agreement with China’s CBC, a subsidiary of Contemporary Amperex Technology Co., Limited (CATL), the leading global lithium battery manufacturer. This partnership aims to establish two lithium carbonate production facilities in the Uyuni salt flats, one with an annual output capacity of 10,000 tons and the other with 25,000 tons. President Luis Arce highlighted that this initiative positions Bolivia to significantly influence the international lithium market, bolstered by its extensive lithium reserves. Furthermore, negotiations are ongoing with China’s Citic Guoan Group for a potential third contract, following a previous $970 million agreement with Russia’s Uranium One Group for lithium extraction in the same region.
Bolivia is home to one of the largest lithium reserves worldwide, primarily located in the Uyuni salt flats. The increasing global demand for lithium, especially for electric vehicles and mobile devices, has spurred investments in lithium extraction and production. This $1 billion deal with China reflects a strategic move by Bolivia to capitalize on its resources and enhance its role in the global lithium supply chain, especially as nations rush to electrify their transportation sectors. The government’s efforts to secure partnerships with foreign entities underscore the significance of lithium in the global energy transition.
The recent $1 billion agreement between Bolivia and China’s CBC marks a significant advancement in Bolivia’s efforts to leverage its lithium resources. With the potential to influence international lithium prices and meet burgeoning global demand, Bolivia is positioning itself as a pivotal player in the battery supply chain. Ongoing negotiations for additional contracts further emphasize the nation’s commitment to becoming a leader in lithium production.
Original Source: jordantimes.com
