Bolivia is home to the largest lithium deposits worldwide. Lithium has many uses, among them its use in rechargeable batteries for electric vehicles as well in energy storage. The demand for the metal is increasing as the transition to clean energy is adopted by more countries around the globe.
In an effort to become a major player in the international lithium market, Bolivia recently entered into a partnership with Uranium One Group to construct a lithium carbonate plant in the Uyuni salt flats. The salt flats hold an estimated 21 million tons of the silvery-white metal. Uranium One Group is a part of Rosatom, a Russian state-owned nuclear corporation.
This project will be using advanced direct lithium extraction technology, a move that may revolutionize the extraction of lithium.
The tech has been heralded as a game-changer, with an extraction rate of about 80%. This is significantly higher than the 12% extraction rate from conventional methods. It also uses fewer chemicals, which makes it an environmentally friendly option.
However, the tech hasn’t been tested fully or on such a large scale in the real world. It doesn’t help that Bolivia’s political situation is complicated. For years, the South American country has struggled with political instability and divisions, which has made project execution extremely difficult. With Bolivia set to hold elections next year, there’s a risk that project implementation may get bogged down by controversy over the deal’s transparency.
Additionally, meeting the country’s strict environmental rules is expected to be challenging for all parties involved. Due to the country’s fragile and rich ecosystems, concerns have risen that large-scale projects, such as lithium extraction, may disturb this delicate balance. It is likely that global as well as local environmental groups may spark protests, even with direct lithium extraction technology being touted as a cleaner alternative.
The project will also need to manage its usage of water, particularly in Uyuni, which is a dry area.
Despite the concerns, the success of this project may revolutionize the international lithium market by positioning Bolivia to occupy a larger share of the market as the demand for lithium continues to rise.
The competition is fierce, however, with Argentina, Australia and China also ramping up their own lithium projects. Australia is currently the largest producer of lithium globally, closely followed by Chile and China. Therefore, if Bolivia is to come out on top, it will need to address issues with political stability, logistics and infrastructure.
In the meantime, other entities such as Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are working to develop lithium mines within North America so that the chokehold that China has on the industry can gradually be broken.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
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