Bolivia lags in race to meet global lithium demand

Significance

Deemed to have the world’s largest lithium reserves, Bolivia has been slow to develop this potential key resource. It now faces the threat of being marginalised by other producers -- notably Argentina and Chile -- at a time when demand for electric car batteries has greatly increased the price of this commodity.

Impacts

• The environmental impact of lithium production has not been fully evaluated and could trigger protests, delaying production.
• The importance of lithium production is set to overtake that of potash production from salt brine.
• Fears of global over-supply of lithium in the medium term may prove exaggerated.