Bolivia Faces Challenges in Lithium Mining Despite Vast Reserves
Bolivia, home to the world’s largest lithium reserves, is struggling to compete with its South American neighbors Chile and Argentina in tapping into the lucrative lithium market. The region, known as the Lithium Triangle, holds about 60% of the global lithium supply, essential for producing batteries used in electric vehicles, smartphones, and renewable energy storage.
Despite its vast resources, Bolivia’s lithium production remains minimal. In 2023, the country produced just 948 tonnes of lithium carbonate—a precursor to battery-grade lithium—which pales in comparison to Argentina’s output and represents only 2% of Chile’s production. Bolivia’s sole lithium plant, located at the Uyuni salt flat, operates at just 20% of its capacity, far from its target of 15,000 tonnes per year. The dense and compact soil of Uyuni, combined with its high altitude, presents significant extraction challenges compared to Chile’s Atacama Desert, where conditions are more favorable for large-scale lithium extraction.
Bolivia’s lagging performance is also attributed to inadequate technical, legal, and institutional frameworks. Gonzalo Mondaca, a researcher at the Bolivian Center for Documentation and Information, noted that while pilot projects were initiated, the transition to industrial-scale production has not materialized. “If the government of Bolivia has succeeded in anything, it was in propaganda. It has kept people's hopes up for more than 15 years,” Mondaca stated.
Recent developments have raised some optimism. In 2023, Bolivia signed agreements to construct two lithium extraction plants using electro-chemical processes, which are less water-intensive but require significant upfront investment. One contract is with Russia’s Uranium One, set to develop a plant with an annual capacity of 14,000 tonnes. Another deal with a subsidiary of China’s CATL, the world’s largest battery maker, involves building facilities with a combined output of 35,000 tonnes per year. However, both agreements require congressional approval, where political divisions within the ruling party could delay progress.
The cost of producing lithium in Bolivia remains a concern. While Chile’s production costs range from $2,500 to $4,000 per tonne, Bolivia’s Uyuni plant is projected to cost between $4,000 and $8,000 per tonne. This disparity underscores the technical and economic hurdles Bolivia faces in becoming a significant player in the global lithium market.
As global demand for lithium surges, Bolivia’s slow progress raises questions about whether it can seize this critical opportunity. “There will always be debate over whether we are facing a window of opportunity that is about to close,” said Martin Obaya, a researcher at San Martin National University in Argentina. While Bolivia’s potential is undeniable, significant reforms and investments are required to translate its vast reserves into economic gains.
