Bolivia Signs $1 Billion Deal with China to Develop Lithium Production Plants

Bolivia has signed a $1 billion deal with China’s CBC to develop two lithium carbonate production plants in Uyuni, enhancing its capability to influence global lithium prices. This agreement follows an earlier deal with a Russian consortium and indicates Bolivia’s active engagement in the electric vehicle supply chain.

On November 27, 2024, Bolivia announced the signing of a significant $1 billion agreement with China’s CBC, a subsidiary of CATL, the world’s leading lithium battery manufacturer. This partnership aims to establish two lithium carbonate production plants located in the Uyuni salt flats. The plants are designed to have an annual production capacity of 10,000 tons and 25,000 tons, respectively. President Luis Arce emphasized that this achievement positions Bolivia as a vital entity in the global lithium market, potentially influencing lithium prices internationally. This development complements an earlier $970 million agreement with a Russian company for a lithium extraction facility in the same region, both of which require parliamentary approval. Furthermore, negotiations with China’s Citic Guoan Group are also in progress for a third contract, showcasing Bolivia’s ambition in the lithium sector.

Bolivia is recognized for possessing some of the largest lithium reserves in the world, often regarded as ‘white gold’ due to its critical role in powering electric vehicle batteries and mobile devices. The global shift towards electric vehicles has intensified the demand for lithium, prompting countries with abundant resources, like Bolivia, to capitalize on this mineral. The nation’s strategic agreements with foreign companies signify an effort to elevate its status in the global market and to engage in the lucrative battery production industry, further bolstered by the electrification of transport globally. These developments are also reflective of Bolivia’s broader ambitions to harness its natural resources for economic growth.

In conclusion, Bolivia’s recent $1 billion agreement with China’s CBC marks a significant step toward establishing the country as a key player in the lithium market. The planned production facilities in the Uyuni salt flats will enhance Bolivia’s capacity to meet global lithium demand, thereby influencing international pricing dynamics. As negotiations continue with additional parties, such as Citic Guoan Group, Bolivia is poised to expand its role in the global electric vehicle market.

Original Source: jordantimes.com