The military coup in Bolivia likely to give a German company the right to extract lithium deposits for batteries. 

The military coup in Bolivia has put in place a government which appears likely to give a German company the right to extract lithium deposits for batteries. 

Bolivia's Salar de Uyuni salt flats hold the largest reserves of lithium in the world and demand for lithium is expected to more than double by 2025. The soft, light mineral is mined mainly in Australia, Chile, and Argentina. Bolivia has plenty—9 million tons that have never been mined commercially, the second-largest amount in the world—but until now there's been no practical way to mine and sell it.

Morales' cancellation of the ACISA deal opened the door to either a renegotiation of the agreement with terms delivering more of the profits to the area's population or the outright nationalization of the Bolivian lithium extraction industry.

"Bolivia's lithium belongs to the Bolivian people," tweeted Washington Monthly contributor David Atkins. "Not to multinational corporate cabals."

The coup, which resulted in Morales resigning and going into hiding, was the result of days of protests from right-wing elements angry at the leftist Morales government. Sen. Jeanine Añez, of the center-right party Democratic Unity, is currently the interim president in the unstable post-coup government in advance of elections.

Investment analyst publisher Argus urged investors to keep an eye on the developing situation in Bolivia.

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