Bolivia inks US$1.4bn deals with Chinese, Russian firms to build lithium plants

Bolivian state-owned company YLB signed two agreements on Thursday for the development of industrial complexes to produce lithium carbonate in the Pastos Grandes and Uyuni salt flats, involving total estimated investments of US$1.4bn.

The agreement for the Salar de Pastos Grandes salt flat was signed with the Russian company Uranium One Group, and for the Salar de Uyuni facility with the Chinese company Citic Guoan.

Carlos Ramos, CEO of YLB, said that the companies had agreed to work under the conditions established by YLB, so the State will maintain control of the mineral.

According to official projections, each plant will have the capacity to produce 25,000t/y of lithium carbonate, with a purity of 99.5%.

In the act to sign the agreements, the hydrocarbons and energy minister Franklin Molina said that the Bolivian government is aiming to meet a target of producing around 100,000t of lithium carbonate by 2025 from the Uyuni, Coipasa and Pastos Grandes salt flats. 

Molina added that Citic Guoan is also looking to invest in battery production plants and establish a vehicle assembly plant, which would kick off a revolution in electromobility in Bolivia.

In January, President Luis Arce's government signed a deal with Chinese consortium CBC, which agreed to invest US$1.4bn to build two production plants with direct lithium extraction technology in the Uyuni and Coipasa salt flats. That investment was confirmed last week.