BOLIVIA Trends and Developments Contributed by: Jorge Inchauste and Rosario Echeverría, Dentons Guevara & Gutiérrez S.C.
Dentons Guevara & Gutiérrez S.C. Calle 15 Calacoto Torre Ketal Of 402
La Paz Bolivia
Tel: +591 2277 0808 Fax: +591 2279 6462 Email: jorge.inchauste@dentons.com Web: www.Dentons.bo
The Challenges of Lithium Project Development in Bolivia
YLB chose eight companies to work with and has already signed three framework agree - ments. Currently, only one of these companies (Uranium One Group) has successfully entered into a joint venture agreement with YLB for the development of a direct lithium extraction plant in the Salar de Uyuni. This agreement is pending approval from the Bolivian National Assembly. In 2024, YLB launched the Second International Public Tender to execute a Direct Lithium Extrac - tion project in the Bolivian Salt Flats. As a result of this tender, YLB is currently negotiating agree - ments to develop lithium projects with CATL BRUNP & CMOC (China), Protecno S.R.L. (Italy), Eramet S.A. (France) and Eau Lithium PTY Ltd. Despite the speed with which YLB has conduct - ed these tender processes, there is still reason - able doubt as to whether these negotiations will have a successful conclusion and whether Bolivia will finally be able to exploit its lithium reserves. At this point, a question that has been present in the minds of Bolivians for decades rises again: what challenges are faced by investors seeking to develop lithium projects in Bolivia?
Bolivia has 23 million metric tons of verified lith - ium, making it one of the largest reserves in the world. However, at present, it is the only country in the lithium triangle (Argentina, Chile, Bolivia) in South America that has not been able to become a major player in this market. The Bolivian State has sought to exploit its lithium reserves for more than five decades, but the challenges faced by potential investors to implement lithium projects in Bolivia are apparently stronger than the will of the State. Bolivia is undergoing a serious trade balance and economic crisis. Coupled with a sustained decline in revenue from the exploitation and commercialisation of hydrocarbons (primarily natural gas), this has led the government mak - ing the exploitation of lithium reserves a main governmental objective. In this context, in 2021 the government of Bolivia launched an International Tender for collabora - tion in the Direct Extraction of Lithium from the brines of the salt flats in Uyuni, Coipasa and Pastos Grandes, through Yacimientos de Litio Bolivianos (YLB – the state-owned company in charge of everything related to lithium in Bolivia).
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