Bolivia is facing growing public opposition to contracts signed with Chinese and Russian firms to exploit its vast lithium reserves, with local communities arguing the deals provide little benefit to the country. The controversy has led the Bolivian Chamber of Deputies to suspend parliamentary discussions on the agreements, pending further consultations with civil society groups.
The contracts, valued at approximately $2 billion, include a $970 million deal signed with Russia’s Uranium One Group (UOG) and a $1 billion agreement with Chinese firms CBC and Citic Guoan Group. These projects aim to establish lithium processing plants capable of producing tens of thousands of tonnes annually.
President Luis Arce has accused lawmakers of obstructing key investments as part of a broader political strategy against his administration. He warned that failure to approve the deals this year could set Bolivia’s lithium industry back by a decade, stating that if the country waits until 2035 or 2040, lithium could become obsolete, replaced by alternative clean energy sources like green hydrogen.
Community groups, environmental organizations, and leaders from Potosí—the site of the Uyuni salt flat, one of the world’s largest lithium reserves—have raised concerns over the agreements’ transparency and potential environmental impact. Critics highlight the stark cost disparity between the two contracts, with the Russian deal costing 2.4 times more per tonne of lithium carbonate production than the Chinese project, with no clear justification for the price difference.
Additionally, the feasibility of the UOG agreement has been questioned, as the contract gives the company only 18 months to complete plant construction before its expiration, an unusually short timeframe that risks leaving Bolivia with incomplete infrastructure.
Under Bolivian law, foreign investors must conduct free, prior, and informed consultations with local communities and complete environmental impact assessments before industrial projects can proceed. The agreements also require legislative approval.
Government officials claim the projects will generate substantial revenue, with estimates suggesting that Potosí alone could receive $800–$900 million in royalties over 30 years, amounting to $30–$35 million annually.
Despite possessing an estimated 23 million tonnes of lithium reserves, Bolivia has struggled to develop a viable lithium industry. Political instability, a state-controlled resource extraction model, and high magnesium levels in its lithium deposits have hampered large-scale production. Unlike Chile and Argentina, Bolivia has yet to become a major player in the global lithium supply chain.
Yacimientos de Litio Bolivianos (YLB), the state-owned lithium company, opened Bolivia’s first industrial-scale lithium plant in late 2023. However, it operated at just 17% capacity last year and is expected to reach only 23% in 2025.
Vice Minister of Energy Resources Exploitation Raúl Mayta stated that the contracts “are not written in stone,” adding that the government will continue technical discussions to address public concerns. Officials maintain that the agreements will fast-track the country’s lithium industry, with Bolivia retaining 51% of profits from the partnerships.
