On Wednesday, Bolivia forged a significant partnership with Russia’s Uranium One Group.
They agreed to build a semi-industrial direct lithium extraction (DLE) plant in Colcha, Potosi.
The $450 million project represents a major stride in Bolivia’s industrial growth.
President Luis Arce announced this historic development on social media, underscoring its importance for the country.
Karla Calderón, president of Yacimientos de Litio Bolivianos (YLB), explained the plant’s construction phases.
Initially, the plant will produce 1,000 tons of lithium carbonate annually. In the second phase, production will ramp up to 8,000 tons.
Finally, the third phase will add 5,000 tons, achieving a total of 14,000 tons per year.
This venture is the second collaboration between Bolivia and the Russian Uranium One Group, a Rosatom subsidiary.
Their first project, signed in June, aims to build a lithium carbonate industrial complex in Pastos Grandes, Potosi. This facility is expected to produce 25,000 tons each year.
Bolivia’s Minister for Hydrocarbons and Energy, Franklin Molina, detailed the investment plan.
The project involves a staggered investment totaling $450 million. The pilot plant’s construction will receive an initial $100 million investment.
To increase production to 9,000 tons, the first expansion will cost $200 million. The final stage, aiming for 14,000 tons, will need an investment of $150 million.
Molina highlighted the meticulous negotiation process behind these investment decisions. It involved comprehensive technical, ecological, and financial analyses.
Following the agreement’s signing, construction of the pilot plant is set to start immediately.
It is expected to be completed by 2025.
Juri Ulijanin, representative of the Russian company, stated that planning for the lithium carbonate plant project would begin post-signing.
This partnership marks a pivotal moment in Bolivia’s industrial and economic development.
Background
Russia’s involvement in Bolivia has expanded across various sectors.
Russia has played a crucial role in Bolivia’s defense sector by supplying military equipment, offering training, and providing support to enhance Bolivia’s defense capabilities.
In healthcare, Russian pharmaceutical firms have entered the Bolivian market, contributing medical products and technologies.
This collaboration gained significance during the COVID-19 pandemic, with Russia providing vaccines and medical assistance.
Beyond lithium, Russia has shown interest in Bolivia’s mining industry, exploring opportunities to access diverse mineral resources.
In agriculture, Russia has supported Bolivia in modernizing its farming practices by providing technical expertise and agricultural equipment.
Educational and cultural exchanges are fostering ties, with Russian universities offering scholarships to Bolivian students across various study fields.
Russia’s commitment extends to infrastructure projects, contributing to Bolivia’s long-term development through investments in transportation and communication infrastructure.
These comprehensive collaborations reflect Russia’s holistic approach to its relationship with Bolivia, addressing key sectors crucial for Bolivia’s development.