London, 15 October 2010

Bolivia's minister of mining has announced that the country will begin lithium carbonate and potassium chloride production for export later this month at a plant in Western Bolivia, Bloomberg reports. Production for export will take several months, but the government plans to be able to start exporting by early next year.

Analytical Note:

Bolivia is attempting to industrialize its lithium reserves, which stand at an estimated 5.4 metric tons. The country is believed to have the largest lithium reserves in the world, and successful production and export for use in electronic items is expected to provide the country with a major new revenue source. Plant production, according to Bloomberg, should yield around 40 metric tons of lithium carbonate per month, along with 1,000 tons of potassium chloride. For now, the country is still in the market for financing for its lithium development projects.

The US imports the most lithium of any country in the world. As reported in the Weekly Geopolitical Summary from 23 September 2010, Iran and Bolivia in early September strengthened ties, with Iran approving a $245 million loan package for Bolivian industrial development. The package will include assistance from Iranian experts in the exploration of mineral deposits, including uranium and lithium.

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