| Tweet Us! | | | | say. Since it weighs less than nickel, which is also used |
| In one of the more remote regions on the planet, high in | | | | in batteries, it would allow electric cars to store more |
| the Andes, lies the Salar de Uyuni, the famed salt flats | | | | energy and be driven longer distances. |
| stretch across more than 4,000 square miles in Potosi, | | | | However, President Evo Morales & Bolivias powerful |
| Bolivia, well known for the fabulous wealth in silver | | | | popular movement are suspicious of foreign |
| extracted there by the Spanish in colonial times. Now a | | | | companies & have a track record of arbritary dealings |
| new age of mining could bring a 21st century El | | | | with foreign concerns, as Brazil found out in 2006, |
| Dorado for the impoverished South American nation, | | | | when Morales nationalised all natural gas concerns in |
| as geologists believe that more than half the world's | | | | Bolivia, including operations by UK producer BP (NYSE |
| reserves of lithium may lie under the salt pans. | | | | - BP). The end result being that foreign companies |
| Government officials claim that Bolivia possesses the | | | | have halted all investment in Bolivian opportunities. |
| world's biggest lithium reserves, and they also believe | | | | "There are fairly significant barriers to developing the |
| the country is poised to profit from car manufacturers | | | | resource in Bolivia," said Timothy McKenna, vice |
| which are driving to develop electric cars that will run | | | | president of investor relations at Rockwood Holdings, |
| on lithium ion batteries. | | | | one of the three major lithium producers in Latin |
| "Bolivia will become a big producer in six years of | | | | America. |
| batteries," Luis Alberto Echazu, the minister of mining | | | | At the La Paz headquarters of Comibol, the state |
| and metallurgy, said in an interview. He ticked off three | | | | agency that oversees mining projects, Mr. Morales's |
| companies that he said have expressed interest in | | | | vision of combining socialism with advocacy for |
| investing in the government's lithium venture: Sumitomo, | | | | Bolivia's Indians is prominently on display. Copies of |
| Mitsubishi and Bollore, a French company. | | | | Cambio, a new state-controlled daily newspaper, are |
| Lithium is the lightest metal and the least-dense solid. It's | | | | available in the lobby, while posters of Che Guevara, |
| typically extracted from beneath salt flats, currently | | | | the leftist icon killed in Bolivia in 1967, appear at the |
| about 70% of the world's supplies come from Chile | | | | entrance to Comibol's offices. |
| and Argentina. The U.S. Geological Survey says 5.4 | | | | "The previous imperialist model of exploitation of our |
| million tons of lithium could potentially be extracted in | | | | natural resources will never be repeated in Bolivia," said |
| Bolivia, compared with 3 million in Chile, 1.1 million in China. | | | | Saúl Villegas, head of a division in Comibol that |
| Independent geologists estimate that Bolivia may have | | | | oversees lithium extraction. "Maybe there could be the |
| further lithium deposits at Uyuni and its other salt | | | | possibility of foreigners accepted as minority partners, |
| deserts, though high altitudes and the quality of the | | | | or better yet, as our clients." |
| reserves could make access & extraction difficult. | | | | A potential model may already be in place, India's Jindal |
| While estimates vary widely, some geologists say | | | | Steel & Power signed a $2.1 billion deal in 2008 for the |
| electric-car manufacturers could draw on Bolivia's | | | | exploitation of iron reserves in south-eastern Bolivia, |
| lithium deposits for decades. More importantly, the US | | | | near the border with Brazil. This will allow Jindal, India's |
| is estimated to have less than 400,000 metric tonnes | | | | leading steel producer, to develop 50% of El Mutun, |
| available for exploitation within its borders. While lithium | | | | widely believed to be the biggest untapped iron ore |
| batteries don't currently power hybrid vehicles, analysts | | | | deposit in the world, along with steel making facilities. |
| think that the fuel-efficient electric cars of the future | | | | With an estimated 40 billion tons of iron ore reserve, El |
| likely will use them. With an estimated 20,000 tons of | | | | Mutun is expected to generate $200 million a year for |
| lithium carbonate expected yearly from the salt flats, a | | | | Bolivia, plus up to 21,000 jobs when the commercial |
| rising demand for lithium for electric car batteries, and | | | | production of steel begins in 2010. It is heavily rumoured |
| with the price of a ton of lithium up from $350 in 2003 | | | | that Jindal won the concession due to its environmental |
| to $3,000 this year, a potential bonanza beckons for | | | | track record. In 2007, Jindal was awarded India's |
| socialist President Evo Morales. | | | | National Energy Conservation Award in the Integrated |
| "There are salt lakes in Chile and Argentina, and a | | | | Steel Plants Sector for its success in protecting the |
| promising lithium deposit in Tibet, but the prize is clearly | | | | environment by adopting eco-friendly processes and |
| in Bolivia," Oji Baba, an executive in Mitsubishi's Base | | | | activities. |
| Metals Unit, said in La Paz. "If we want to be a force in | | | | The opportunity to enrich the nation is there & a |
| the next wave of automobiles and the batteries that | | | | careful balance between foreign technological & |
| power them, then we must be here." | | | | financial assistance in developing the deposits, whilst |
| Mitsubishi is not alone in planning to produce cars using | | | | providing an economical & ecological bias for Bolivia is |
| lithium-ion batteries. Ailing car manufacturers in the | | | | obviously required. The real question is can Morales |
| United States are pinning their hopes on lithium. General | | | | walk the tight rope between populist politics & reality ? |
| Motors (NYSE - GM) plans to roll out its Volt in 2010, | | | | My opinion, he will get there, as has recently been |
| pairing a lithium-ion battery along with a petrol engine. | | | | seen, collapsing oil prices have had a major negative |
| Nissan, Ford and BMW, among other carmakers, have | | | | effect on Venezuela & Hugo Chavez influence in the |
| similar projects. | | | | region & beyond. So one route for Foreign Direct |
| Demand for lithium, has climbed as makers of batteries | | | | Investment looks to be closed. Morales is a sharp |
| for BlackBerrys, iPhones, laptops & other electronic | | | | operator & I can see him letting foreign firms into |
| devices use the mineral. But the automotive industry | | | | partnership with Comibol, but definitely on Bolivian |
| holds the biggest untapped potential for lithium, analysts | | | | terms. |