Crisis Surrounding Lithium Contracts in Bolivia Continues

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Bolivia is still awaiting the Legislative Assembly's approval of two lithium contracts signed with the Chinese consortium CBC and the Russian Uranium One Group for the construction of two lithium projects in the South American country, which will involve investments of US$2 billion.

CBC signed its contract in 2023 and One Uranium Group a year after, however opposition lawmakers have been criticizing the deals and citing perceived unjust benefits for the country.

Last week, the discussion on CBC's contract was cancelled due to the protests and fights between lawmakers that broke out in the institution after hours of debate. So far, no new date has been set for the discussion on the contract.

The nation's Minister of Energy Alejandro Gallardo announced, "I'm not generalizing. There are assembly members committed to their constitutional mission and to the regions they represent. But there are also others who are only seeking political gain and have no intention of seriously analyzing the project's viability" when discussing the CBC contract.

The tension surrounding lithium agreements is not new. Last month, a judge suspended the contracts following a demand set by Indigenous communities, though a few days after, another judicial decision overturned the ban.

Bolivia holds the world's largest lithium reserves, with more than 21 million tons of lithium. Despite sitting on vast resources, Bolivia's lithium industry remains less developed than those of its neighbours Argentina and Chile.

CBC's project includes the construction of two lithium plants with a production capacity of 35,000 metric tons per year and investments of US$1 billion. Yacimientos de Litio Bolivianos (YLB) would hold 51% of the stakes in both plants. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

"Unfortunately, these contracts have not yet been discussed. Some actors see them as a 'hot potato,' while others consider them an opportunity for the country," said Alfonso Pérez, the general manager of YLB.

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