Bolivia takes production of lithium into own hands

LA PAZ , 12 oktober 2010 ( MO* ) â The government of Bolivia will spend 358 million
euros (500 million US dollars) during the four coming years for the exploitation
of the country's lithium reserves. So far the decision has not been made public
.
Lithium is set to become the resource par excellence for the production of batte
ries for electric vehicles. Chili and Argentina are on top of the list of lithiu
m producing countries. But Bolivia has the largest unexploited reserves.
In 2008 the government of president Morales decided to keep the exploitation of
these reserves in the hands of the Bolivian state, late September 2010 a budget
has been attributed to the necessary investments. Morales communicated his decis
ion personnaly to the direction of the Gerencia de Recursos EvaporÍticos (GERE), th
e public agency in charge of the development of the lithium project, the directi
e of this agency confirmed to us.
At his moment, GERE is finalising the first installations for the production of
lithium carbonate from the salt water of the lake of Uyuni (locally known as the
Salar de Uyuni) in South Bolivia. In a later stage, lithium carbonate can be us
ed batteries for electric vehicles.
Since 2009 several multinational companies have been trying to obtain concession
s in the Salar de Uyuni from the Bolivian state. Initially, mainly the Bolloré grou
p from France and Sumitomo from Japan were active to this effect. These past mon
ths Sumitomo in alliance with Mitsubishi and the Japanese public agency Jogmec h
as renewed its application for concessions. The industrial groups Kores from Sou
th-Korea and Citic Guoan from China have approaches Bolivia with similar proposa
ls.
But despite these proposals, Bolivia maintains its option to keep the first phas
e of the lithium-project (up to the production of lithium-carbonate) entirely un
der the control of the state. This has been formally confirmed to us in La Paz b
y Luis Alberto Echazù, the director of the Gerencia de Recursos EvaporÍticos.
Next year the industrial project of the Bolivian state will further expand, whit
h the construction of a plant that will produce potash from the salt lake of Uyu
ni. Potash is a primary resource for the fertilizer production. Bolivia will spe
nd some 92 million euro (128 million US dollar) for this plant.
At the end of 2014 all the installations combined should produce 30.000 Tons of
lithium-carbonate and 700.000 Tons of potash annually. According to mr Echazù Boliv
ia expects multinational companies to set up Joint Ventures with the Bolivian st
ate in a later stage. These mixed companies may then a.o. produce batteries for
electric vehicles from Bolivia's lithium-carbonate.
Investigation with the support of the Fonds Pascal Decroos and GRESEA. A full re
port on Bolivia's lithium production and the Belgian connection will be publishe
d in a next edition of MO*.