Bolivia's New Leader Vows to Boost Natural Gas, Exploit Lithium

---

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--On Sunday, Bolivia elected center-right Rodrigo Paz as their new president, ending almost two decades of leadership from the left-wing Movimiento al Socialismo (MAS) government.

The president-elect must revive the economy after stagnation, dwindling foreign reserves, and increased public spending. Paz has vowed to launch audits into public companies and promote new hydrocarbons and lithium laws to restore investor confidence in the development of the country's resources.

At the same time, Bolivia's natural gas production, one of its main exports and sources of foreign currency, has declined in recent years, going from 22.1 billion cubic meters in 2014 to 11.8 billion cubic meters in 2024.

Argentina, one of Bolivia's key gas clients, has over the years boosted its own output to end its dependence on Bolivian gas.

In response to these issues, Paz vowed to boost exploration, promote higher production, and increase private investments in partnership with government companies.

Beyond the gas sector, Paz will be sitting on the world's largest lithium reserves, which have remained undeveloped. Despite promises of lithium production and exports from the MAS governments, Bolivia's output remains marginal, with one plant operational in Potosi, owned by Yacimientos Litios Bolivianos (YLB)

Under the government of Luis Arce, Bolivia signed lithium contracts with Chinese and Russian companies. However, little progress has been made on the projects, and the agreements have since fallen under the Bolivian Congress' scrutiny. Paz promised to review contracts from the current government, but he has not detailed further measures.

The president-elect also said he would encourage lithium production through YLB. He also proposed "a specific law for the management of evaporites and brines" in the lithium industry.

However, he dismissed selling his country's national heritage, stating, "I'm not going to sell the Uyuni salt flats to make batteries," during a debate.

The road ahead of Paz remains uncertain, though his centrist position could spur public-private partnerships across sectors.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).