Energy Advisor 2025-11-21 – Inter-American Dialogue

LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

November 21, 2025

Will the Lithium Sector Ever Take Off in Bolivia?

Bolivia’s Salar de Uyuni is home to the largest single deposit of lithium resources in the world, but large-scale mining efforts have stalled there in recent years. // File Photo: Mathias via Adobe Stock.

Q

Rodrigo Paz took office as Bolivia’s president on Nov. 8, becoming the first president elected to a full term since 2002 from outside of former President Evo Morales’ once-dominant MAS party. Paz has pledged to reform the governance of some of the country’s key natural resources—including lithium, of which Bolivia holds more resource deposits than any other country—as his new government faces dwindling foreign reserves and rising inflation. Under what timeframe can Bolivia feasibly ramp up large-scale lithium production? Is Paz’s government likely to honor pre-existing lithium production agreements at the Uyuni salt flat with China’s Citic Guoan and Russia’s Rosatom? What challenges or constraints might Paz’s administration face as it looks to reform state-run YLB?

A

Cecília Godoy, analyst for Latin America and the Caribbean at the Economist Intelligence Unit: “Although Rodrigo Paz has pledged to accelerate lithium development, significant technical and institutional constraints will limit how quickly Bolivia can monetise its vast reserves. The country lacks processing capacity, adequate transport links and the regulatory certainty needed to attract and operationalise large-scale foreign investment. The technical complexity of extracting lithium from high-magnesium brines also poses structural challenges that would slow progress under any administration, regardless of policy orientation. Despite his more pro-investment stance, we expect Paz to retain a state-led model through YLB, allowing joint ventures but avoiding large-scale privatization. This will mitigate political…”

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ABOUT THE Energy ADVISOR

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.