Geopolitical tension: Bolivia seeks to industrialize lithium with the backing of China amid concerns from the United States

The dispute over lithium and its industrialization has generated tensions between China, the United States, and Latin American countries. Bolivia seeks to collaborate with China in industrializing its lithium deposits, which has raised concerns in the United States. China, as the leading consumer and manufacturer of lithium batteries, is intended to secure its supply and has formed alliances with lithium-rich countries such as Chile, Argentina, and Bolivia.

Chinese, Russian, and U.S. companies join lithium extraction in Bolivia

Yacimientos de Litio Bolivianos (YLB) President, Carlos Ramos, announced that four Chinese companies, namely Citic Guoan, Tbea Group, CATL BRUNP & CMOC (CBC), and Fusion Enertech, have successfully conducted tests of their Direct Lithium Lithiation Extraction (DLE) technology in Bolivia’s Potosí and Oruro salt flats. These companies participated in YLB’s international tender for EDL technology selection, and so far, CBC is the only one that has signed an agreement with the Bolivian government.

Chinese mining in Bolivia

Chinese mining companies are able to act intensively. The effects of this activity have been experienced mainly at social and environmental levels in Bolivia.

Chinese company involved in corruption cases confirmed irregular business dealings in road tenders.

China Harbour Engineering Co. (CHEC) reported having found irregularities in the bribery case involving the Bolivian Highway Authority (ABC), which led to the dismissal of the company’s general manager, Jin Zhengyuan.

Chinese company reportedly bribed officials of the Bolivian Highway Administration

A pro-government congressman denounced a Chinese company for a millionaire bribe to officials of the Bolivian national road entity.

Corruption scandals in Bolivia

China’s companies CAMC Engineering Co Ltd (CAMC) and YLB have been at the center of several controversies involving corruption due to a the construction of a water treatment plant in the Uyuni Salt Flat, in Potosí in Bolivia.

China and Bolivia join forces to build a gas plant

President Luis Arce continues to work on the development plans for Bolivia. In 2021 Bolivia had signed a project with the Chinese company Sinosteel to build a plant for steel extraction and a gas plant will be built in the same complex in 2022.

Bolivia signs mining production contract with Chinese company

The Bolivian Mining Corporation (Comibol) and the Chinese company Phoenixminig S.A. signed a 15-year mining production contract on October 29 in the Amayapampa mining district in the municipality of Chayanta, Rafael Bustillo province in Potosí (Bolivia).

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