Bolivia has struck a $1 billion deal with China’s CBC to build two lithium carbonate production plants in Uyuni, with capacities of 10,000 and 25,000 tons annually. This initiative is part of Bolivia’s strategy to leverage its vast lithium deposits and potentially influence global lithium prices. Ongoing negotiations for a third contract with Citic Guoan Group are also in progress, marking a significant development in Bolivia’s lithium industry.
On November 27, 2024, Bolivia announced the signing of a $1 billion agreement with China’s CBC, a subsidiary of CATL, the foremost lithium battery manufacturer worldwide. This partnership aims to establish two lithium carbonate production facilities in the Uyuni salt flats, which are known to host extensive lithium reserves. The plants will have capacities of 10,000 tons and 25,000 tons of lithium carbonate annually, positioning Bolivia to become a significant influencer in global lithium pricing. In addition, President Luis Arce indicated ongoing negotiations for a separate mining deal with China’s Citic Guoan Group.
The growing demand for lithium, often referred to as “white gold,” is primarily driven by its critical role in manufacturing batteries for electric vehicles and mobile devices. Bolivia is home to the largest known lithium reserves, particularly in the Uyuni salt flats. The recent agreement with China is part of a broader strategy to enhance Bolivia’s role in the global battery supply chain, complementing a previous agreement with Russia’s Uranium One Group for lithium extraction operations.
Bolivia’s $1 billion deal with China sets the stage for substantial growth in the lithium production sector, aligning with global trends in electric vehicle and battery technology. With further negotiations ongoing for additional contracts, Bolivia is poised to significantly impact the international lithium market. Approval from the Bolivian parliament remains a pivotal next step for these developments.
Original Source: jordantimes.com
