Bolivia's YLB, Russia's Uranium One sign agreement on US$1bn lithium plant

Bolivia's state lithium company YLB and Russia's Uranium One Group signed an agreement on the construction of a US$976-million direct lithium extraction (DLE) plant that will also use carbonation technology.

The plant, expected to produce 14,000t/y of certified battery-grade lithium, will be installed in the Llipi sector, south of the Uyuni salt flat in Potosí department, YLB president Omar Alarcón said during the signing ceremony.

Initially, the plant will produce 1,000t/y.

The agreement was signed by Alarcón and Uranium One's legal representative Larisa Lysova in the presence of President Luis Arce, vice president David Choquehuanca, hydrocarbons and energy minister Alejandro Gallardo, other officials, and representatives of social organizations.

Alarcón said plant construction will be subject to rigorous data analysis, geological and environmental studies and technological efficiency, among other aspects.

He added that DLE will allow lithium recovery rates of over 80% compared with 12% using evaporation ponds.

Uranium One Group and Chinese companies CBC and Citic Guoan Group, were selected last year in YLB's first international call for proposals to install pilot plants that would then be scaled up to industrial production with DLE technology.

In July, YLB announced that it started negotiations with CBC and Citic regarding contracts to install DLE plants in the Uyuni and Coipasa salt flats.

President Luis Arce's administration is seeking to turn Bolivia into a major global supplier, aiming to export 50,000t/y of lithium carbonate.

"Bolivia has clearly and sovereignly decided to enter the industrialization of lithium – we're doing it," Arce said during the signing ceremony.

But Arce faces problems in the national assembly to get the contract approved.

Former deputy minister of mining and metallurgical productive development Hector Córdova told BNamericas that not only does Arce lack the required votes, but lawmakers are also considering next year's elections.

"It is clear that the Arce government is seeking to have a positive impact on the population in order to obtain electoral benefits. Arce is making efforts to show the population that there is management and achievements to have a media impact, especially with a strategic resource such as lithium, but it will be very difficult to obtain votes in the assembly," said Córdova, who is now a consultant.

RESOURCES

The government claims that Bolivia's lithium resources amount to 23Mt.

In July, Arce said that YLB is carrying out an exploration and quantification program in the Pastos Grandes, Cañapa, Capina, Chiguana and Empexa salt flats, aimed at further increasing the resources.

In the second half of last year, YLB began exploration at Coipasa and Pastos Grandes, with diamond drilling of wells that were 30-50m deep to assess the amount of resources.