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