Can Resource Nationalism Deliver for Bolivians and the World?
The introduction of plug-in hybrid and electric vehicles at the end of 2010 has increased interest in the lithium supplies needed for their batteries. This paper elaborates on the challenges of producing lithium from Bolivia and speculates on ways in which these issues can be met to the satisfaction of the Morales government and Bolivians. According to the U.S. Geological Survey, four South American countries hold 90 percent of the world’s known economic, marginally economic and sub-economic lithium reserve base — Chile, with 7.5 million metric tons (mmt); Bolivia, 5.4 mmt; Argentina, 2.2 mmt; and Brazil, 0.9 mmt. Chile is the top producer in the world, and Argentina expects its production to increase significantly in the next year, propelling it to the number four producer. Bolivia, on the other hand, has not begun production. Prospective mining companies face many challenges in Bolivia today. The environmental impact from water use and construction on the remote Salar de Uyuni, the w
