The biggest opponent of Bolivian President Luis Arce is part of his political camp. Former president Evo Morales, who was in office from 2006 to 2019, often publicly calls out his former economy minister and current president.
That is why the signing of the contract on Bolivian lithium, which should pull the country out of the economic crisis in the medium term, came at the right time. The contract is quite attractive.
According to official data, the Russian company Uranium One Group will invest 450 million dollars in a lithium mining pilot project in Bolivia.
After several years of strife in which both Morales and Arse participated, now the country can present an international partner.
Karla Calderon, the woman at the head of the state-owned lithium firm, said the venture in the hills of Bolivia would have three phases. In the first phase, the goal is to produce 1.000 tons of lithium carbonate per year. In the second phase, this will increase to 8.000 tons per year, and in the third phase, an additional 5.000 tons is planned.
The focus is on causing as little damage as possible to the human environment, so the project will serve to conduct research aimed at proving the technological viability of future plants, said Calderon.
This contract is already the second of its kind signed with a subsidiary of the Russian state concern Rosatom. In June last year, the two parties agreed on the construction of an industrial complex for lithium carbonate in the area of the Pastos Grandes volcanic crater.
Bolivian preference for China and Russia
"The competition for lithium is fierce," says Latin American-Russian relations expert Vladimir Rovinsky of Colombia's Icesi University.
"It seems that strategic alliances are being made that go hand in hand with the inclinations of the current governments, for example, in the current case, the inclination of the government of Bolivia towards Chinese and Russian companies. Ultimately, these alliances are short-term, since economic logic dictates that economic interests take precedence over transient affinities," he adds. he.
In addition to Russia, China could also be successful in Bolivia. The Chinese concern Contemporary Amperex Technology is leading Chinese partners who intend to invest 1,4 billion US dollars in the construction of a lithium mining facility.
And President Luis Arce knows that Bolivia could have been faster in this area. "The old folk wisdom applies here to go slowly because we are in a hurry," he said and added that Bolivia must take safe steps, because it must not allow itself to make mistakes on such an important issue.
Arse also raises hopes among partners outside of Russia and China: "Our visits to the European Union, Brazil and the BRICS countries have clearly shown that there is great interest in our lithium."
Lithium - the key to electric cars
Lithium carbonate is used for the production of lithium batteries for electric cars. When switching from fossil fuels to electric power, lithium is a strategic raw material. Geologists estimate Bolivia's lithium reserves at 23 million tons. It is the largest stockpile in the world.
Five years ago, Germany was considered the country with the best starting position in Bolivia. The joint venture between Berlin and La Paz was supposed to mark the beginning of exploitation. Germany, as a major car manufacturer, had high hopes for this kind of business.
Political turbulence in Bolivia followed, and the project became the topic of the election campaign. But the German side was also wrong.
In the meantime, the project died. Germany is hoping for similar deals in Argentina and Chile, countries that also have rich lithium deposits.
At least Germany managed to expand a free trade agreement with Chile that should facilitate joint lithium mining projects.
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