Will Bolivia build a lithium battery plant in China?

La Paz (AFP) – Bolivia said Tuesday it had signed a $1 billion deal with China's CBC, a subsidiary of the world's largest lithium battery producer CATL, to build two lithium carbonate production plants in the country's southwest.

Where are Bolivia's lithium plants located?

Bolivia's state-owned Bolivia Lithium Deposits (YLB) said the plants -- one with an annual capacity of 10,000 tons of lithium carbonate and the other of 25,000 - would be situated in the vast Uyuni salt flats. Lithium, nicknamed "white gold," is a key component in the production of batteries for electric vehicles and mobile phones.

Will Bolivia become a global leader in lithium production?

Bolivian President Luis Arce aims to position his country as a global leader not only in lithium production but also in developing new lithium batteries and related products, catering to the increasing demand amid the shift to cleaner energy and transportation.

How much does lithium cost in Bolivia?

Although the contracts estimate a lithium price of $30,000 per ton, Alarcon noted that a price of at least $10,000 — more or less where prices are now — is necessary to ensure the plants’ commercial viability. But Bolivia’s track record of lithium development is far from stellar.

Could lithium be a source of internal conflict in Bolivia?

Bolivia, home to the world’s largest lithium deposits, views this resource as a transformative opportunity for industrialization and modernization, but if mismanaged, it could also be a source of internal conflict.

Is China's Lithium deal a 'worst possible deal' for Bolivia?

"Under this contract, there are no benefits for Bolivia," Torres said, calling China's lithium agreement the "worst possible deal." Torres explained that during the first phase, China will have the right to use the land for 36 years but is granted 42 years in total.