Lithium: Third Stage | Litio: tercera etapa

By Juan Jose Toro, Vision 360:

While all attempts to exploit Bolivian lithium have failed, Australia, Argentina, and Chile, which have smaller salt flats, have taken the lead.

A wave of protests has erupted in different parts of the country against the contracts that the central government has signed with two foreign companies for the exploitation of lithium in the Uyuni Salt Flat.

This time, the protests are not concentrated in Potosí, the department where the salt flat is located, but most of the demonstrators are from Potosí. To this end, the strength of the region’s residents in the rest of the country has been mobilized.

Experts have presented arguments showing that these contracts are more beneficial to foreign companies than to the country. Therefore, the protests are justified both technically and economically. Beyond this, though no less important, is the argument that Potosí’s natural resources have always been exploited without benefiting the department, which, as a result, has remained in a state of chronic poverty.

Given this, any current analysis of lithium must take into account not only the arguments mentioned above but also the history of this resource and the repeated failed attempts to exploit it and generate benefits from that exploitation.

As most Bolivians know, the history of lithium is not recent. It does not begin with the government of Jaime Paz Zamora but dates back to earlier periods when it was discovered that this white metal, identified in 1817 by Johann Arfvedson, has the versatility to be used in alloys and electric batteries. Lithium’s potential was established in the 1960s, and in 1975, studies of Bolivia’s salt flats began. By 1989, L’Office de la Recherche Scientifique et Technique Outre-Mer (Orstom) had already confirmed the potential of the Uyuni Salt Flat, verifying that it was—and still is—the largest lithium reserve in the world. On that basis, the last government of Víctor Paz Estenssoro began negotiations with an American multinational for the exploitation of this resource. What Paz Zamora did was inherit that contract and sign it.

With this background, I identify three stages in Bolivia’s lithium era:

  1. The Awakening. The signing of the contract with the multinational Lithium Corporation (Lithco) during the government of Jaime Paz drew national attention to lithium and made the people of Potosí aware of its potential.
  2. The Deals. After FMC Lithium Division decided not to fulfill the contract for the exploitation of lithium in the Uyuni Salt Flat, individual negotiations took place to benefit from this resource, from Gonzalo Valda to Evo Morales.
  3. The Uncertainty. While all attempts to exploit Bolivian lithium have failed, Australia, Argentina, and Chile, which have smaller salt flats, have taken the lead. In Bolivia, discussions about backroom deals continue.

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