Lithium mining in Bolivia

Lithium Mining in Bolivia is a major industry. More than half of the world's known lithium reserves are located in the lithium triangle: an area that spans parts of Argentina, Bolivia, and Chile. Bolivia has the world's largest reserves – an estimated thirty-eight percent of the global total.^[1] Bolivia makes up less than one percent of global production, while Chile and Argentina produce around forty-five percent.^[2]^[3]

Several factors contribute to Bolivia's low production. One issue is the decentralization stemming from Bolivia's plurinational constitution framework for governing, adopted in 2009. This decentralization has prevented the national government to industrialize the industry without the consent of indigenous communities. Bolivia also rejected foreign investment, unlike the more successful countries.^[1] Another issue is the more difficult process of extracting lithium from Bolivian salt flats.^[4]

History

In 2008, then president Evo Morales announced state control of the lithium industry by the state's lithium company Yacimientos del Litio Boliviano (YLB).^[1] YLB has struggled to increase production, while attempts to work with private foreign companies, such as a 2018 deal with the German company ASISA, have been hindered by protests.^[4]

Bolivian president Luis Arce is more supportive of foreign investment than Morales and has explored collaboration with outsiders, despite opposition from those that wish to limit foreign involvement.^[4] In 2023, YLB made a deal with the Chinese battery company CATL to allow for the further industrialization of the industry. YLB is in talks with companies from the US, China, and Russia.^[5]

Production

Lithium extraction requires a substantial amount of water, which has led to water shortages near the mines. Sixty-five percent of the water supply in the Lithium Triangle has been consumed by extraction.^[6]