Bolivia Signs $1 Billion Deal with China’s CBC to Boost Lithium Production

Bolivia has signed a $1 billion agreement with China's CBC, a subsidiary of the world’s largest lithium battery producer CATL, to construct two lithium carbonate production facilities in the country's southwest. The announcement was made on Tuesday, with Bolivia's state-owned Bolivia Lithium Deposits (YLB) confirming that the plants would be located in the Uyuni salt flats, a region known for its vast lithium resources.

One of the planned facilities will have an annual capacity of 10,000 tons of lithium carbonate, while the other will produce 25,000 tons annually. Lithium, often referred to as "white gold," is a crucial component in manufacturing batteries for electric vehicles and mobile phones. Bolivia, which claims to have the world's largest lithium reserves, aims to significantly boost its position in the global lithium market through this initiative.

President Luis Arce, who oversaw the signing ceremony, stated that the deal paves the way for Bolivia to become a major player in influencing the international price of lithium. This agreement follows a $970 million deal signed last year between Russia's Uranium One Group and YLB for another lithium extraction facility, also planned for the Uyuni salt flats. Both agreements are currently pending approval by Bolivia's parliament.

In addition, President Arce announced that Bolivia is negotiating a third contract with China's Citic Guoan Group, expressing hope that the deal could be finalized soon. These developments are part of Bolivia's broader strategy to leverage its lithium resources and position itself as a key player in the growing global demand for electric vehicle components.