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According to a new national plan Bolivia is about to start the production of small quantities of lithium carbonate in 2010 using its own huge reserves of lithium. In a next step the commercial production followed by a production plant to manufacture lithium car batteries in 2018 is envisaged. The needed investment is meant to come from international companies partnering with Morales’ Government.

Deputy Science and Technology Minister Roger Carvajal explained at the International Lithium Forum that closed last Saturday 31 October how the Bolivian Administration would exploit its vast lithium deposits in the future. The basic strategy plan foresees three steps starting with a pilot plant in 2010 in the “Salar de Uyuni” where small quantities of the batteries key ingredient lithium carbonate will be produced. A larger commercial plant is planned three years later. At a future stage, in 2018, Bolivia plans to develop a battery plant and perhaps even battery-powered automobiles.

Looking for partners that invest but not own

President Evo Morales declared at the international forum in La Paz that Bolivia is planning to produce 30,000 tons of lithium carbonate, an amount equal to thirty percent of the world's current supply, starting in 2013. To build the production plant an investment of 350 million US dollar has to be shouldered and an additional one billion US dollars for the future steps such as the production of lithium batteries and battery-powered vehicles. Morales made clear that the lithium industry in Bolivia would be 100% state-owned, however, to bear the costs he would need international partners that have to accept the role of “partners not owners.”

Among the companies that have already expressed interest are France’s Bollore, Japan’s Sumitomo and Mitsubishi and South Korea’s Kores and LG., as well as China’s Qinghai Salt Lake Industry Group’s.

The largest lithium reserves in the world?

The U.S. Geological Survey says that “El Salar de Uyuni” holds around 5.4 million tons of the element which is approximately 50% of the world’s 11 million metric tons of lithium reserves. The enormous salt flat is therefore supposed to be the largest lithium resource in the world. It has 10,000 square kilometers expanse and is situated in the southwestern of Bolivia over 3600 kilometers above the sea level.

While the global demand of 70,000 tons today is mainly supplied by Chile but also from Argentina and China that already produce the lithium carbonate is Bolivia hoping to fill in the gap of future rising demand.

Although Uyuni may hold the largest reserves of lithium in the world, analysts have questioned the quality of the deposit and have said the high degree of magnesium in the brine of the salt lake could make lithium recovery expensive. Moreover, the lake floods every year, which may lower the efficiency of solar evaporation ponds from which lithium is extracted.