Bolivia has signed a $1 billion deal with China’s CBC to build lithium plants in Uyuni, aimed at bolstering its role in the global lithium market. The agreement comes alongside discussions for further contracts, indicating Bolivia’s potential as a major supplier of lithium for battery production.
On Tuesday, Bolivia announced a significant agreement with China’s CBC, a subsidiary of CATL, to construct two lithium carbonate production facilities worth $1 billion. The facilities will be located in the Uyuni salt flats, which are believed to house the world’s largest lithium reserves. The planned plants will have production capacities of 10,000 tons and 25,000 tons of lithium carbonate annually. President Luis Arce emphasized the importance of this partnership, stating it positions Bolivia as a crucial player in the global lithium market.
Lithium is often referred to as “white gold” due to its essential role in battery production for electric vehicles and consumer electronics. Bolivia boasts vast lithium reserves, thereby attracting international interest as global demand for lithium surges. The recent deal follows a prior agreement with Russia’s Uranium One Group for a lithium extraction facility, further underscoring Bolivia’s strategic position in the lithium supply chain. The Bolivian parliament will need to approve the current agreement before implementation can proceed.
The $1 billion agreement between Bolivia and China’s CBC signifies a pivotal advancement for Bolivia in the global lithium market. With its abundant lithium resources, Bolivia aims to enhance its standing as a key supplier while influencing international pricing dynamics. As President Arce indicated, ongoing negotiations with other Chinese firms suggest continued interest in Bolivia’s lithium potential, reflecting the growing importance of this resource in the global economy.
Original Source: www.france24.com
