The Bolivian government suspended a public meeting on Thursday following over two hours of protests against lithium contracts with a Chinese-led consortium. The demonstrations occurred in Potosí, where the planned lithium carbonate plants will be built.
In November 2023, state-owned Yacimientos de Litio Bolivianos (YLB) signed a $1 billion lithium production service deal with Hong Kong-based CBC Investment, led by battery giant CATL. The project involves constructing two lithium carbonate plants at the Salar de Uyuni salt flats, with a combined capacity of 35,000 tonnes per year. The agreement is pending approval from the Chamber of Deputies.
Activists have raised concerns about potential environmental damage, particularly the high water usage in lithium extraction and its impact on local ecosystems. The Civic Committee of Potosí is also demanding an increase in lithium royalties, currently set at 3%, arguing they are insufficient to benefit the local population.
The government maintains that the project will generate economic opportunities, with 85% of the workforce required to be domestic. YLB has stated that under the service contract model, Bolivia retains full control over production and commercialization, ensuring national economic benefits.
Additionally, Russian state firm Uranium One Group, a subsidiary of Rosatom, is set to establish a direct lithium extraction (DLE) operation in Salar de Uyuni. Initial production is expected to reach 1,000 tonnes per year in 2025, with plans to scale up to 14,000 tonnes annually in three phases.
