Bolivia has clinched a significant deal with Russia’s Uranium One Group, owned by state-run nuclear corporation Rosatom, to establish a lithium carbonate production facility in the Salar de Uyuni, one of the world's largest lithium-bearing salt flats. 

The $976mn project will use Russian Direct Lithium Extraction (DLE) technology, enabling the production of up to 14,000 tonnes of battery-grade lithium annually. This is a key step in Bolivia’s ambition to industrialise its vast lithium reserves, which are estimated to be the largest globally, at around 23mn tonnes.

Last year, Uranium One, along with Chinese companies CBC and Citic Guoan Group, was chosen to set up pilot DLE plants in Bolivia, which are expected to expand to industrial-scale operations over time. The Bolivian government has set a target of exporting 50,000 tonnes of lithium carbonate equivalent each year, aiming to establish the country as a key player in the global lithium supply chain, particularly for electric vehicle batteries.

The plant will be located at an altitude of 3,656 metres, and production is expected to begin by the second half of 2025. The DLE method is seen as a more environmentally friendly option, with fewer chemical inputs compared to traditional techniques. Moreover, it promises a recovery rate of over 80%, a significant improvement over the 12% achieved with conventional evaporation methods.

Bolivia’s lithium journey has faced numerous challenges. Since the 1990s, the country has struggled to develop its industry, hampered by political instability, bureaucratic red tape, and logistical hurdles. To move forward, companies must navigate complex environmental regulations and obtain approval from the legislative assembly, which may be difficult given the country's political fragmentation and upcoming 2025 general elections.

If successful, this deal could pressure other lithium-producing nations to adopt more efficient and environmentally friendly extraction technologies.