According to a statement released by the Chinese Embassy in Bolivia on the 27th, the CATL-led consortium (CBC) signed a lithium carbonate production service contract with Bolivia’s state-owned Yacimientos de Litio Bolivianos (YLB) on the 26th for the Uyuni Salt Flat. According to Reuters, the contract is valued at $1 billion (approximately 7.24 billion RMB), and the CATL consortium will build two lithium carbonate production plants in southwestern Bolivia.
According to reports from Reuters and Agence France-Presse, the two plants will be located in Bolivia’s vast Uyuni Salt Flats. One plant will have an annual production capacity of 10,000 tons of lithium carbonate, and the other will have a capacity of 25,000 tons. The Bolivian government will hold a 51% stake in the project.
The CBC Bolivia branch is a joint venture led by CATL, with CATL holding a 66% stake. The remaining 34% is jointly owned by China Molybdenum Co., Ltd. (CMOC) and Guangdong Brunp Recycling Technology Co., Ltd.
Bolivia, along with Chile and Argentina, forms South America’s "Lithium Triangle," home to the world’s largest lithium resources. According to the U.S. Geological Survey, Bolivia’s salt flats contain the world’s largest lithium resources, estimated at around 21 million tons. In July 2023, following exploration efforts by YLB on the Coipasa and Pastos Grandes salt flats since 2022, Bolivia’s proven lithium reserves increased from 21 million tons to 23 million tons.
However, Reuters notes that Bolivia has struggled to achieve large-scale lithium development and production, and many external investors remain cautious due to the country’s political instability.
According to reports, the Bolivian government is also negotiating with another Chinese company, with a memorandum of understanding already signed to build another plant using direct lithium extraction technology. Additionally, companies from Australia, Germany, France, the United Kingdom, and Argentina have expressed interest in collaborating with Bolivia in lithium development.
In June 2023, according to foreign media reports, CATL confirmed a $1.4 billion investment to help develop Bolivia’s vast but largely untapped lithium reserves.
