Bolivian lithium sector development faces hurdles

Significance

The country has been slow to develop its substantial lithium reserves, focusing its efforts on producing lithium batteries, but the Chinese deal promises to accelerate the process, adopting a different technology. Chinese involvement in lithium production in Latin America has elicited official criticism from the United States.

Impacts

• Production in Bolivia will remain small compared with that of Chile and Argentina.
• Chinese firms may prove reluctant to manufacture batteries in Bolivia.
• An OPEC-style tie-up arrangement by ‘lithium triangle’ countries would be hindered by politics and the need for external expertise.