China And Russia Invest $1.4 Billion In Bolivian Lithium Plants

The government said Thursday that China and Russia will spend $1.4 billion on lithium projects in Bolivia, a South American nation with enormous reserves of the metal needed for batteries to power electric vehicles.

President Luis Arce announced at a public gathering that China’s Citic Guoan and Russia’s Uranium One Group will collaborate with Yacimientos de Litio Bolivianos (YLB) to build two lithium carbonate plants.

Because of its application in rechargeable lithium-ion batteries for vehicles and in renewable energy storage systems, lithium has grown more significant as the world swings toward greener energy.

The deal was signed in the presence of Bolivian, Chinese, and Russian representatives from the three companies.

Arce’s government signed a new agreement in January with the Chinese consortium Catl Brunp & Cmoc (CBC) to build two lithium battery plants. CBC has vowed to invest at least $1 billion.

Uranium One Group will invest $578 million in a plant in the Pastos Grandes salt flats, while China’s Citic Guoan $857 million in a second plant north of the Uyuni salt flats, both in the southwest Andean department of Potosi, according to the government’s presentation.

In a statement, the Ministry of Hydrocarbons and Energy said, “Each of the complexes will have the capacity to produce up to 25,000 metric tonnes per year”.

The plant’s construction will commence within the next three months.

Bolivia has declared 21 million tonnes of lithium deposits in the Uyuni salt flats, claiming to be the world’s biggest source.

Bolivia has failed to harness its lithium riches, owing in part to terrain, political tensions, and lack of technological know-how.

The Ministry of Hydrocarbons said in January that it aims to export $5 billion of lithium by 2025, which would exceed its earnings from natural gas, which generated $3.4 billion in revenue in 2022 and is the country’s main source of income.

Also read: Mexico Heat Wave Leaves Over 100 Dead; Highs Near 50 Degrees