Bolivia And The Lithium Rush

Bolivia is supposed to have an abundant supply of lithium, and maybe half of the world’s reserves. U.S. automakers, among other foreign competitors, would like to conduct business with Bolivia. It is very probable that the next generation of cars will use lithium batteries in electric vehicles.

Bolivia has nationalized its resources. President Evo Morales is popular and has a major following in Bolivia. His goal is to utilize the country’s bounty of natural resources and spread the wealth to the people. He has claimed that he is an American Indian; the majority of Bolivians are indigenous also.

Bolivia is one of the poorest countries in Latin America. There has been much political turmoil in the last several decades. The people are angry about the manipulation of their natural resources, while not reaping the profits. Foreign investors and privileged minorites have benefited the most. Morales is hoping to change this.

President Morales has strong ties with Hugo Chavez and Cuba. This could complicate the notion of doing business with Bolivia. But Morales has stated that he will negotiate with whomever he chooses, getting the best deal for Bolivia.

 Chile and Argentina are heavy producers of lithium. If lithium does prove to be a successful component of today’s technology, some experts say that lithium demands may outweigh the supplies. Bolivia is the country believed to be the Saudi Arabia of lithium. Getting Bolivia to surrender it will be the next challenge.

“Look for the diplomatic relations between Bolivia and the United States to improve; and especially between the U.S. and South America.”

Sources:
* SBS/Dateline: Dancing with Evo Morales – Bolivia - YouTube
* The New York Times: In Bolivia, Untapped Bounty Meets Nationalism
* BBC News: Bolivia’s lithium mining dilema