Bolivia has signed a $1 billion contract with China’s CBC to establish two lithium carbonate plants, enhancing its role in the lithium market, crucial for batteries. The deal, pending parliamentary approval, follows previous agreements with Russia’s Uranium One and ongoing negotiations with Citic Guoan Group.
On Tuesday, Bolivia formalized a significant $1 billion agreement with China’s CBC, a subsidiary of CATL, recognized as the world’s largest lithium battery manufacturer. This collaboration aims to establish two lithium carbonate production facilities in Bolivia’s southwest region. Notably identified as a crucial mineral for electric vehicle and mobile phone batteries, lithium, often referred to as “white gold,” positions Bolivia as a potential leading player in the global market due to its extensive lithium reserves. President Luis Arce emphasized the strategic importance of this partnership, stating that it would enhance Bolivia’s influence over the international pricing of lithium. This agreement follows a previous arrangement with Russia’s Uranium One Group to develop a $970 million lithium extraction project in Uyuni, both of which are pending parliamentary approval. Furthermore, President Arce disclosed ongoing negotiations for an additional agreement with China’s Citic Guoan Group, expressing optimism about finalizing the deal promptly.
Bolivia is home to the largest lithium deposits globally, with the mineral gaining substantial relevance as the demand for electric vehicles and renewable energy storage continues to surge. The recent agreement with China underscores Bolivia’s intent to capitalize on its lithium resources, positioning itself as a critical participant in the international lithium market. Prior agreements with foreign entities indicate a growing interest from international players in Bolivia’s rich lithium reserves, highlighting the country’s potential to influence market dynamics significantly. As Bolivia seeks to develop its lithium capabilities, legislative approval for these projects will be crucial to proceeding.
The recent $1 billion agreement between Bolivia and China marks a pivotal moment for Bolivia in its quest to harness its lithium resources. As the nation aims to establish itself as a major contributor to the global lithium supply, the support from foreign investments such as those from China and Russia will be vital. The extensive lithium deposits position Bolivia attractively in the market, provided that parliamentary approval is obtained for the proposed agreements. This development not only elevates Bolivia’s importance in the international arena but also underscores the growing global reliance on lithium for modern technological applications.
Original Source: news.az
