The Big Question: With Half the World's Supply of Lithium is Bolivia Set to Become the Next Saudi Arabia?

The World Policy Blog
July 23, 2009

Bolivia, despite being the poorest nation in South America, holds half the worlds supply of lithium under its Salar de Uyuni salt flat. For years, this resource remained untouched. Now, investors from the United States and the rest of the developed world are eyeing Bolivia's lithium as the key component in electric and hybrid vehicle batteries. But mining this sustainable (and profitable) resource of the future is not that simple. Evo Morales, the first-term president of Bolivia, has been hostile to multinational corporations, and his socialist tendencies and support for the indigenous peoples that live around the Salar de Uyuni may keep the lithium underground for years to come.

Carin Zissis, AS/COA Online Managing Editor comments:

"The question is not if, but when foreign firms will play a role. The Morales administration may talk about preventing plunder of its lithium industry and foreign companies may shy from working with a government with an expropriation history. But ultimately Bolivia needs expertise and financing while the world needs lithium. It's just a matter of negotiating the terms."

To view interactive, click here.

To speak with one of our experts on this topic, call 212-277-8384 or email communications@as-coa.org.

See more in:  Bolivia, Energy & Commodities