Bolivia Signs $1B Lithium Extraction Deal

Bolivia has signed a $1 billion deal with China's CBC, a subsidiary of CATL, to construct two lithium extraction plants in the Uyuni salt flats, aiming to capitalize on its vast lithium reserves. The plants will produce a combined total of 35,000 metric tons of lithium carbonate annually, with Bolivia's state-owned YLB holding a 51% stake to maintain control. This initiative is significant for Bolivia's ambitions to become a key player in the global electric vehicle supply chain, particularly as demand for lithium continues to surge. President Luis Arce stated that this deal positions Bolivia to influence international lithium pricing, with additional negotiations underway for a third contract with Citic Guoan Group. However, both the lithium and a previous $970 million deal with Russia's Uranium One Group are pending congressional approval, highlighting political complexities that could impact these ventures. The strategic partnerships signal Bolivia's commitment to becoming a vital supplier in the clean energy transition.