Bolivia shortlists firms for lithium pilot production

The Bolivian government has selected nine companies to carry out pilot tests for direct lithium extraction, as the country resumes its push towards starting large-scale production.

The government launched an international call for proposals on 30 April to develop deposits in the salt flats of Uyuni, Coipasa and Pastos Grandes. It is evaluating the companies to ensure they meet its conditions.

Bolivia has the world's largest lithium resource, estimated at 21mn t in the Salar de Uyuni, not including Coipasa and Pastos Grandes, the minister of hydrocarbons and energy Franklin Molina said. That compares with resources of 19.3mn t in Argentina, 9.6mn t in Chile, 6.4mn in Australia and 5.1mn t in China, according to the US Geological Survey.

Advances in direct lithium extraction technology are making it financially viable to extract lithium directly from fluids using ion absorption, without having to evaporate the brines first.

Bolivia could use the technology to shorten the timescale to start the industrial production of lithium-ion battery cathodes, lithium carbonate and lithium batteries, Molina said.

In 2019, the government of President Evo Morales awarded contracts to German company ACI Systems and China's Xinjiang TBEA to develop lithium production in the country. The government would retain 51pc ownership of any producer to limit foreign ownership. However, the agreements were halted in response to local opposition and were put on hold following the ouster of Morales in November 2019.

State-owned lithium company Yacimientos de Litios Bolivianos (YLB) was founded in 2017 to oversee the development of the industry. It is evaluating the nine bidders to determine which extraction technology is the most suitable for the Bolivian resources.

"There are five to six types of Direct Lithium Extraction (EDL) technology that are being developed; each company employs different technology, which must be adapted to the type of raw material that our salt flats have. The objective is to identify what type of technology is best suited to the recovery of Bolivian lithium," the company said. It is looking to implement EDL technology that will have a yield of above 80pc for lithium recovery.

YLB has been running a pilot operation, producing several hundred tonnes of lithium carbonate per year. In the first half of 2021, YLB generated income of more than 81mn Bolivian bolivianos ($11.7mn) from the sale of potassium and lithium carbonate to the national and international markets. The company expects to reach Bs120mn by the end of August and Bs160mn by the end of the year.

On 14 August, YLB announced a tender to sell 120t of spot technical-grade 98.5pc lithium carbonate with the winning bid selected on 23 August. That follows the sale of 100t in June, 530t in March and 770t in January.

The Bolivian government is looking to develop a vertically integrated supply chain within Bolivia under local ownership, rather than having international companies exporting raw materials. It has produced 4,000 lithium batteries so far this year, with a target to reach 8,000 by the end of the year for energy storage in solar photovoltaic systems, power banks, and electric vehicles, YLB said.

The government has also passed a decree offering a series of incentives for companies importing or manufacturing electric vehicles in industrial free zones without tariffs, Molina said.

By Nicole Willing