Bolivia's Deputy Minister of Technological Minerals, Ismael Charly Rodríguez, has announced that talks on rare earth mineral cooperation with Iran began on March 13 in a meeting with Ambassador Bahram Sharabeddin and mining representatives from both countries. The negotiations aim to establish a partnership focused on joint scientific research, technical collaboration, and Iranian investment in Bolivian mining projects.

Bolivia has identified two key rare earth deposits: one in Palca, Cochabamba, covering 16,000 hectares, and another in Cerro Manomó, Santa Cruz, spanning 12,500 hectares. These areas contain strategic minerals like neodymium, europium, and lanthanum, essential for modern technology, including electric vehicle batteries and medical equipment. The global demand for rare earths exceeds $10bn, with China controlling around 80% of the supply. Bolivia aims to break this dependence by industrialising its resources rather than exporting raw materials.

Iran, facing sweeping Western sanctions, seeks economic alliances through South-South cooperation. Bolivia, for its part, sees this partnership as a means to develop its mining sector without relying on Western companies. The proposed agreement includes technology transfer, investment, and potential Iranian involvement in geological mapping. According to reports, the Iranian delegation proposed participation in Bolivian mining projects through joint investment. Additionally, they claimed to have the necessary technology to complete or complement Bolivia’s national geological mapping, a task currently undertaken by the Servicio Geológico Minero (Sergeomín). Rodríguez detailed that Iran has agreed to cover the costs of these projects, while Bolivia could compensate for services in various ways, including the provision of strategic services beneficial to both nations.

Critics question the transparency of these negotiations and the environmental impact of rare earth mining. Processing these minerals generates toxic waste, and Bolivia lacks the infrastructure to manage it safely. Additionally, concerns have been raised over Iran's broader geopolitical interests, particularly given past reports of military and intelligence cooperation between the two nations. The recent influx of Iranian nationals into the South American country has drawn scrutiny, with regional figures such as Argentine Security Minister Patricia Bullrich expressing concerns over potential ties to the Quds Force, a military branch of Iran's Islamic Revolutionary Guard Corps.

Back in July 2023, Bolivia and Iran inked an agreement in Tehran, endorsed by Bolivian Defence Minister Edmundo Novillo Aguilar and his Iranian counterpart, Mohammad Reza Ashtiani. While the deal's specifics remain undisclosed, Ashtiani indicated that it included selling military equipment and training Bolivian personnel.

Bolivia has a long history of strategic alliances with Iran, dating back to the leftist administration of Evo Morales in 2006. While relations cooled during the interim government of Jeanine Áñez (2019-2020), they were re-established under President Luis Arce. Some analysts warn that closer ties with Iran could attract international scrutiny, especially from the United States and regional neighbours wary of the Islamic Republic's alleged activities in Latin America.

Without clear safeguards, the agreement could yet become another case of resource extraction favouring foreign interests over Bolivia’s economy – much like recent lithium deals with Chinese and Russian firms, which have drawn criticism over national interests and environmental concerns.