Bolivia has secured a $1 billion deal with China’s CBC to construct two lithium carbonate plants in the Uyuni salt flats, aiming for 35,000 tons of production annually. President Luis Arce emphasized the deal’s importance in establishing Bolivia as a significant player in the lithium market, with future agreements under consideration.
On November 27, 2024, Bolivia announced the signing of a significant $1 billion agreement with China’s CBC, a subsidiary of the leading lithium battery manufacturer, CATL. The contract involves the construction of two lithium carbonate production facilities in the Uyuni salt flats, with capacities of 10,000 tons and 25,000 tons, respectively. President Luis Arce highlighted that this deal positions Bolivia as a crucial factor in shaping the global lithium market, known for its vital role in electric vehicle and smartphone batteries. Following a previous $970 million agreement with Russia’s Uranium One Group, Arce indicated there are ongoing negotiations with Citic Guoan Group for an additional contract.
Lithium is increasingly recognized as a critical resource, often referred to as “white gold,” essential for the battery production industry, particularly regarding electric vehicles and electronic devices. Bolivia possesses the largest lithium reserves globally, making it a key player in the emerging market for lithium extraction and production. The recent agreements with major international corporations mark Bolivia’s strategic efforts to leverage its natural resources and participate actively in the global battery supply chain.
The $1 billion deal with CBC marks a pivotal moment for Bolivia in the international lithium market. With the potential to produce a combined total of 35,000 tons of lithium carbonate annually, the country is poised to enhance its role in the supply chain for electric vehicle batteries. The ongoing negotiations for further collaborations indicate a growing interest in Bolivia’s lithium resources, which could lead to significant economic benefits and influence over global lithium pricing.
Original Source: jordantimes.com
