Bolivia Sets High Standards for Chinese Lithium Investment
Photo: Wikimedia Commons.
The Chinese company Hong Kong CBC must achieve 99.5% purity in battery-grade lithium carbonate at two plants in Bolivia’s Uyuni Salt Flat. If it fails to meet this standard, or if the lithium recovery rate falls below 80%, the company will be required to dismantle the plants, restore the site to its original state, and leave the country without any compensation, according to Pablo Nina, legal manager of Yacimientos de Litio Bolivianos (YLB).
This requirement, outlined in the contract’s technical annexes, reflects the technological risk assumed by Hong Kong CBC, as Bolivia’s climate conditions and the composition of Uyuni’s brine may pose challenges for the company’s Direct Lithium Extraction (DLE) technology. Although Hong Kong CBC has already conducted preliminary tests, unpredictable factors could still affect operations.
In November 2024, YLB signed a $1.03 billion service contract with Hong Kong CBC for the construction of two lithium carbonate production plants, with annual capacities of 10,000 and 25,000 tons, totaling 35,000 tons per year.
On February 7, the Economy, Production, and Industry Commission of Bolivia’s Chamber of Deputies approved the contract and forwarded it for full legislative debate. Additionally, the commission is reviewing a separate $970 million agreement between YLB and the Russian company Uranium One Group for the production of 14,000 tons of lithium carbonate per year, also using Direct Lithium Extraction technology at Uyuni.
Main Source:
China CBC deberá dejar Bolivia si futuras plantas no producen carbonato de litio al 99,5% de pureza, el Estado no le pagará nada – Agencia Boliviana de Información.
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