Bolivian President Luis Arce asserts that any negotiations regarding Bolivia’s lithium reserves must accommodate the nation’s business model, which incorporates a state-owned enterprise.
This came to light during a recent EU-CELAC summit where discussions about accessing Bolivian lithium were on the agenda.
Arce made it clear that Bolivia’s government policy stipulates state participation throughout the lithium production process, from mining to industrialization and commercialization.
He suggested the vastness of Bolivia’s lithium reserves leaves room for many entities to be involved under these terms.
The EU is on a mission to transition from internal combustion engines to electric models, which necessitates significant lithium supplies for battery production.
Consequently, lithium is vital to Europe’s decarbonization strategy.
Bolivia, a key player in the lithium-rich region known as the Lithium Triangle alongside Chile and Argentina, offers substantial reserves.
Unlike its counterparts with direct partnership models with private companies, Bolivia’s lithium sector has been headed by a state-owned company, Yacimientos de Litio Boliviano, since 2017.
The price of lithium has risen significantly in the past two years.
Arce sees negotiations with a state-owned entity as advantageous, aligning with Bolivia’s Constitution that declares all natural resources are state property to be managed for the majority benefit of the nation.
While attending the EU-CELAC summit, Arce highlighted the challenges of reaching consensus among the many delegations.
He emphasized political maturity’s importance in accepting the majority consensus in such negotiations.