Here are a few more reasons why Chile's lithium will dominate the future.
Uyuni’s (Bolivia)lithium reserves are relatively impure, unconcentrated, and are subject to seasonal flooding, which slows the evaporation process. This will make extraction more complex and costly. In contrast, Chile’s salt flats are said to contain the best quality lithium deposits in the world, with high concentrations, in a dry climate at lower altitude. Reportedly, Bolivian scientists have developed a unique formula for producing high-quality lithium carbonate, which should help to reduce costs.
Furthermore, Uyuni is remote and inaccessible, while Chile’s salt flats are served by modern roads, leading to nearby seaports (that once belonged to Bolivia). The impoverished Uyuni region’s overall lack of infrastructure is a fundamental obstacle that the Bolivian government has recognized, and with a $500 million commitment, it has taken an important first step to develop roads, electricity and water, gas pipelines, communications, and other basic systems.
Environmental and social impacts of lithium extraction on the Uyuni region present another formidable challenge. Relative to other forms of mining, the evaporation process used for lithium extraction appears to be considerably less contaminating. However, the region’s farming economy and sensitive desert ecosystem highly depend on water resources, which could be severely affected by a large-scale extraction project. Lithium processing also produces sulfur dioxide, which can cause lung problems.
The Bolivian government also faces the political challenge of developing the capacity to effectively and efficiently manage a complicated new industry, including its probable future relationship with multinational partners. A recent scandal involving the head of the state hydrocarbons company, a close confidant of Morales, underscores the urgency of dealing with corruption, which the government acknowledges as a high priority.
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