Will Lithium Batteries Make Bolivia the "Saudi Arabia of Electric Cars"?

BOLIVIAN SALT DESERTS



I love a win-win situation. Who doesn't? One of the greatest things about new fuel technologies is that often they produce [potential] win-win situations. But harnessing resources for new technoloies effectively requires a careful balancing of concerns on how to most efficiently bring key raw materials to market, concerns about environmental responsibilites, and concerns for the inhabitants of lands containing such materials.

PRODUCING A VIABLE ALTERNATIVE

More efficient batteries are the key to producing viable electric vehicles which will be able to compete with traditional combustion engine vehicles because they extend the usuable range to a comparable distance and free up interior space for passengers and cargo.

Right now, lithium is the key compenent to making those better batteries that will power those viable alternatives. It seems only proper then to assume that the demand for lithium is going to rise in parallel with the growth in popularity of lithium batteries as a power source.

THE OBVIOUS QUESTION

Where is the increased supply output going to come from?

Right now, it looks like the obvious answer is Bolivia.

Located in the heart of South America, Bolivia is a relatively undeveloped country. But it possess numerous salt deserts. It's from these deserts that lithium is harvested. Bolivians are literally standing on their future. As one of the poorest countries in South America, this natural resource could be their key to a better life (or the key to their destruction, if one were a pessimest...).



BOLIVIA'S NATIONALIST APPROACH

Evo Morales, the Bolivian President and strong critic of the U.S., is wary of foreign exploitation of his country and it's resources, and understandably so. It makes sense. After all, it is their lithium. Right now, the country is forging ahead in a nationalistic direction to protect its self-interests.

However, its' best interests may better be served by embracing a participatory, global perspective. While Chile, Argentina and even the US have natural lithium resources of their own, the U.S. Geological Survey estimates that 5.4 million tons are waiting to be extracted from the salt deserts in Bolivia - half the world's lithium supply, and significantly more than any other country in the world.

Read more HERE at the New York Times, or HERE at the Huffington Post.

HOW WILL BOLIVIA EXPLOIT ITS RESOURCES EFFICIENTLY?



The Bolivian government is projected to spend millions in harvesting and development plants for refining its' lithium reserves over the coming years. However, the country still lacks necessary funds and the know-how regarding harvesting all that lithium.

GM, Toyota, Mercedes-Benz, BMW, Nissan-Renault, Mitsubishi and Volkswagon are all looking to get their hands on lithium to either upgrade existing hybrid/electric cars or to use in new model production.

Read More HERE at Treehugger.com.

To date, the Bolivian government has denied companies the ability to harvest the resource in it's raw state. The Bolivians want a piece of the action, and rightly so. In that light, it appears that the only option is to strike a deal - Bolivia needs to find a partner that can efficently harvest and refine the raw material into market-ready product.

As one journalist wrote recently: "Bolivia could own 51 percent of the new operations while allowing foreign capital to invest new funds through acquiring the remaining 49 percent share of the business. This would keep the final decision in the hands of the Bolivian people while at the same time provide enough capital upfront to commence the production process."

Read more HERE at the Council On Hemispheric Affairs (COHA.org).

While sort of a simplistic solution, the point it makes is obvious. As an added bonus, the increased revenue coming into Bolivia would help elevate the country from it's current meager spot on the world stage. The government would have money to invest in newer technology, more jobs and most importantly education.



CAUTIOUS OPTIMISM

Provided that lithium extraction is done in an environmentally responsible way, the revenue is channeled properly through to its citizens and safeguards are implemented to prevent foreign corporations from cleaning Bolivia the way a school of piranahs might clean an unlucky cow in the waters of the Amazon, a new generation of Bolivians could spread their wings, with new opportunities and resources never before available to them.

Sounds [potentially] pretty win-win to me.