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The projects implementation will be delayed by at least one legislative year and the countrys credibility will be jeopardized. This contract represents a historic opportunity for Bolivia, and Potosí in particular, to assume a leading role in the lithium industry, the government stated. If the Legislative Assembly does not approve the service contract for the production of lithium carbonate in the Uyuni salt flat, signed between Yacimientos de Litio Bolivianos (YLB) and Hong Kong CBC Investment Limited, the country will lose the opportunity to advance toward lithium industrialization, attract investment, and generate employment and economic development in the short term. This was announced by the Ministry of Hydrocarbons and Energy. “The projects execution will be delayed by at least one legislative year and the countrys credibility will be jeopardized. This contract represents a historic opportunity for Bolivia, and particularly Potosí, to assume a leading role in the lithium industry,” stated Álvaro Arnez, Vice Minister of Alternative Energy, explaining that this contract, currently under consideration by the Legislature for legislative approval, “is not a concession or a delivery of lithium, but rather a strategic alliance where the Bolivian State, through YLB, maintains control over the resource, production, and marketing of battery-grade lithium. The projects execution includes the construction of two industrial plants with a combined production capacity of 35,000 tons of lithium carbonate per year.” Arnez also noted that the implementation of the contract will generate more than 4,000 direct and indirect jobs during the construction phase and thousands more during operation. It will also enable the execution of high-impact projects such as hospitals, universities, water networks, road infrastructure, and markets, consolidating regional development based on lithium. The alliance with CBC—a subsidiary of the global giant CATL, a world leader in battery production and recycling—guarantees the use of cutting-edge technology, which optimizes water use and significantly reduces production times. According to the Ministry, the project will only utilize 1.34% of the lithium resources available in the Uyuni salt flat, ensuring the preservation of the tourism and productive ecosystem, it added. Authorities explain that the contract clearly establishes that the lithium produced is delivered to YLB, and that any dispute will be resolved under Bolivian law. Furthermore, a specific clause guarantees legal certainty without compromising state resources, as any reimbursement in the event of contract termination due to regulatory changes is limited to the investment in infrastructure, with no additional interest or compensation. Bolivia recently announced the signing of a new contract to exploit lithium, this time with a Russian company, Uranium One Group , which in collaboration with YLB will develop a plant that will produce 14,000 tons of lithium carbonate annually. |
