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Bolivia’s new centrist president rekindled hope that the country’s lithium reserves may finally be exploited.
State control of the industry under successive socialist governments has sidelined the foreign investment and know-how required to mine the metal, highly prized in the energy transition and in particular for the manufacture of EV batteries.
Rodrigo Paz has vowed to revisit foreign mining contracts blocked by Congress, hoping that investments will bolster the economy as he looks to restore Bolivia’s crumbling finances: Budget deficits have hovered around 10% for years, while the country has run out of dollars to stabilize the economy. The pro-market “honeymoon, whether it lasts 4, 6, or 12 months, will hit the reality of Bolivia’s financial situation,” one expert wrote.
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