COLOMBIA: A new deal signed by the Bolivian government with the Chinese consortium CBC is expected to upgrade joint extraction and development of the South American nation’s lithium reserves.
The latest pact, valued at around US$90mil, adds to a previous agreement signed last year. It will see the Chinese group invest further in Bolivia’s lithium sector.
“An acceleration of lithium extraction is expected, which could clearly benefit Bolivia’s economy today as it seeks to diversify beyond hydrocarbon exports – a main income source that has been declining in recent years,” Juan Subirana, an energy analyst and business consultant in the Bolivian city of Santa Cruz de la Sierra, said.
“Bolivia is betting lithium can replace that lost revenue and foreign currency.”
Bolivia has one of the largest lithium reserves in the world. Lithium is a key mineral used in lithium-ion batteries, which power electric vehicles and electronic devices.
Production under the new deal is slated to begin in 2025. With the price of lithium rising to almost US$85,000 a tonne, a more than 10-fold jump since 2020, the Bolivian government has been eager to exploit its mineral wealth. — China Daily/ANN
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