Are contracts with the Chinese and Russians favorable and transparent? | ¿Contratos con chinos y rusos son favorables y transparentes?

By Andres Gomez, Vision 360:

Lithium Contracts and Distrust

Evidence shows that MAS governments have failed in the lithium industry for 18 years.

He rode a bicycle. But it wasn’t just any bike—it had a lithium-ion battery. And he wasn’t just any cyclist—he was the President. Camera flashes lit up the moment (February 17, 2014), immortalizing Bolivia’s supposed entry into lithium industrialization. Amazing! Later, we learned it was a lie. That plant, located in Palca, Potosí, never produced a single battery.

Five years later (October 2, 2019), the same man appeared driving a buggy. “We are launching the first vehicle assembled with Bolivian lithium in Potosí, powered by batteries from the Palca plant,” he tweeted. Dozens of phones went up, cameras clicked, and another scam was recorded. How many of those vehicles are on the roads today? Not a single one.

Media reports revealed that the Palca pilot plant was built by the Chinese company LinYiDake Co. for about $4 million. It was supposed to produce 1,000 lithium phone batteries and 40 vehicle batteries daily. Does anyone use a battery from the Palca plant? Not MAS loyalists, not Arce supporters, not Andrónico’s followers—no one.

Between 2012 and 2021, the Bolivian government allocated $1.231 billion to the lithium industry. However, execution reached only 48%, and sales revenue was a mere 7%, according to a report by journalist Madeleyne Aguilar from La Nube.

These figures come from calculations by Gonzalo Mondaca, a researcher at Bolivia’s Center for Research and Information (CEDIB), who analyzed official documents and reports from the former National Evaporite Resources Management (GNRE), now Yacimientos de Litio Bolivianos (YLB).

On August 10, 2012, La Razón reported: “President Evo Morales Ayma inaugurated the lithium industrialization process on Thursday with the launch of a semi-industrial potassium chloride plant in Uyuni, Potosí, with an $18 million investment.”

On January 3, 2013, Opinión announced that the Bolivian government had inaugurated “the first pilot lithium industrialization plant in Llipi, southeast of Uyuni, Potosí, with an annual production capacity of 480 tons of lithium carbonate.” The project cost $19 million.

“We have 90% of the world’s lithium, and soon we will control the global lithium market,” then-Vice President Álvaro García declared that day. Twelve years have passed since that demagogic statement—are we controlling the global lithium market?

In December 2023, La Nube verified that only 90 out of 160 evaporation ponds were operational, as the remaining 70 were never sealed. After ten years and a billion dollars wasted, “MAS visionaries” realized that the evaporation method doesn’t work. In 2021, they switched to the direct lithium extraction method.

On March 5, 2023, Los Tiempos compiled a list of failures in Bolivia’s so-called lithium industrialization:

  • The pilot cathode materials plant cost approximately $4 million and was inaugurated in 2017. Its construction was entrusted to the French company Greentech. It was projected to produce 82 kilograms of lithium manganese oxide and 100 kilograms of lithium nickel manganese cobalt.
  • In 2018, the industrial potassium chloride plant was inaugurated at a cost of $188 million, installed by the Chinese company CAMC Engineering Co. It was initially announced that production would reach 700,000 tons per year, later revised to 350,000 tons. By mid-last year, it had not exceeded 25% of its capacity.
  • By 2019, the industrial lithium carbonate plant was scheduled for inauguration, built for $115 million by the Chinese company Maison Engineering. It was designed to produce 15,000 tons, but completion has been delayed for over three years.
  • In 2021, the Research Center for Science and Technology of Evaporite Materials and Resources was inaugurated. The project cost $14 million and was awarded to the Chinese company TBEA Group.

After this chain of ineptitude, the government of Luis Arce signed contracts with a Russian company and a Chinese company. Amid this scenario of corruption and incompetence, the squanderer Evo Morales linked one of Luis Arce’s sons to a family lithium business. The accused rejected the allegation and demanded evidence.

The two lithium contracts are awaiting approval in the Legislative Assembly by senators and deputies. Representatives from Potosí have denounced these contracts as unfavorable to the country, claiming that all costs are borne by Bolivians while all profits go to the two transnational corporations. The government is trying to reverse public distrust. To that end, it controls the media agenda, though few people believe, watch, read, or listen to it.

Evidence shows that MAS governments failed for 18 years in the lithium industry. They squandered over $1.5 billion during those 18 years. They proved MAS corruption in the name of lithium for 18 years. Why should we now believe Luis Arce when he says the contracts with the Chinese and Russians are favorable to Bolivia and transparent?

The day the tyrant Evo Morales fell (11/10/19), MAS supporters tried to incite unrest in El Alto by falsely claiming that the “sellout” right had staged a “coup” to hand lithium over to transnationals. Six years later, people are pointing the finger at the real “sellouts.”

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