MercoPress. South Atlantic News Agency

Morales says Bolivia will produce 30% of world’s lithium carbonate demand

The spectacular Uyuni salt lake that holds world’s largest lithium deposits

President Evo Morales said on Thursday that Bolivia does not need foreign investors to develop an ambitious lithium carbonate project by 2014.

Morales who has tightened the state's grip on the economy by nationalizing key companies, told reporters he was confident that Bolivia will build a plant to produce up to 30,000 tons a year of lithium carbonate in the Uyuni salt lake, which holds the world's largest lithium bounty.

Bolivia does not currently mine lithium, the main component of the rechargeable batteries that power everything from laptops to cameras. Existing suppliers such as neighbouring Argentina and Chile can meet existing demand, but Bolivia plans to develop a lithium industry ahead of a possible electric car boom, which could cause demand for lithium to soar.

“Bolivia guarantees a change in the world's energy balance...we assure the world we'll be able to supply enough lithium for electric cars,” Morales told reporters.

The announced annual 30.000 tons would be equivalent to 30% of current world consumption.

He reiterated that Bolivia does not need foreign investors to develop the project, in which state-run mining company Comibol plans to invest 485 million US dollars.

After negotiating with companies including France's Bollore (BOLL.PA), South Korea's LG (051910.KS), and Japan's Sumitomo (4005.T) and Mitsubishi Corp (8058.T), the Bolivian government decided to develop a lithium industry in Uyuni by itself last year. Bolivia has around 50% of the world's lithium, about 5.4 million tons, according to the United States Geological Survey.

“All companies so far have wanted to be involved in the lithium carbonate production project, but we need partners for the lithium batteries”, said Morales. “We want the batteries factory in Bolivia, not overseas”.

Morales said that Bolivia has managed to develop and patent eight different technologies to produce derivates of lithium, potassium and sodium from the Uyuni salt lake located 4.000 metres above sea level and covering an area of 12.000 square kilometres.