Posted on 17 Feb 2025
The Bolivian government had to suspend a public meeting on Thursday after over two hours of protests against lithium contracts with a Chinese-led consortium.
Last November, Bolivian state-owned miner Yacimientos de Litio Bolivianos (YLB) signed a $1 billion lithium production service deal with Hong Kong-based CBC Investment, a consortium led by battery giant CATL. The pair will build two lithium carbonate plants at the Salar de Uyuni salt flats, with a combined capacity of 35,000 tonnes/year.
The contract is awaiting approval from the Chamber of Deputies, Kallanish Power Materials reports. However, a group of activists protested in Potosí, where the plants will be located, at a public meeting to present the plans.
The project has raised concerns over environmental damage to the salt flats due to high water usage in the lithium extraction process, alongside disruption to local ecosystems.
Another concern is around limited benefits to the population. The Civic Committee of Potosí has been requesting an increase in lithium royalties, which are not deemed sufficient at the current 3% level.
The government insists that the plants will bring economic opportunities, with the law requiring an 85% domestic workforce.
“With this model of contracting services, the state maintains absolute control over the production and commercialisation of lithium,” YLB says in a statement. “It also ensures that the benefits derived from its exploitation directly benefit the country and its industrial development.”
Russian state firm Uranium One Group, part of the Rosatom group, is also set to establish a direct lithium extraction (DLE) operation in Bolivia’s Salar de Uyuni salt flats. The initial production is targeted at 1,000 t/y, ramping up to 14,000 t/y in three phases. First production is slated for the second half of 2025.
Source:Kallanish Power Materials
