Germany secures access to vast lithium deposit in Bolivia
On Wednesday, Germany and Bolivia built a partnership on the industrial use of lithium, the key raw material produced by lithium batteries, and in the upcoming era of electric vehicles, this is an important step in reducing dependence on Asian market leaders.
With the auto industry scrambling to make more electric vehicles and reduce the harmful smoke generated by fossil-fuel-driven vehicles according to more stringent emission rules, the battery metals such as cobalt, nickel and
\"Germany should be the leading area for battery production.
\"A large part of the cost of production is related to raw materials,\" said German economic minister Peter Altmaier . \".
\"As a result, the German industry is advised to meet the demand for lithium as early as possible in order to avoid backwardness and dependence,\" Altai Maier said . \", The deal, added, is an \"important part\" of ensuring supply \".
Private with the joint venture, Bolivia state company YLB and Germany-
With ACI system, develop its huge Uyuni Salt field and build a hydrogen oxide plant and an electric vehicle battery plant in Bolivia.
ACI Systems is also in talks with companies in Germany and elsewhere in Europe about lithium in Bolivia.
The joint venture aims to produce up to 40,000 tons of hydrogen oxide lithium per year in 70 years from 2022.
Wolfgang Schmutz, CEO of ACI Group, the parent company of ACI Systems, said more than 80% of lithium will be exported to Germany.
According to a person familiar with the project, ACI Systems is in talks to supply lithium to a large German carmaker.
A spokesman for ACI Systems declined to comment.
For Germany, the public
Private partnerships are part of a broader government effort to support battery production in Europe and help companies gain more control over value
An electric car chain has been added.
The government has allocated 1 billion euros to support domestic companies in the hope of producing batteries for electric vehicles to reduce the dependence of German automakers on Asian suppliers, and protect dangerous jobs from burning engines.
For Bolivia, the deal to extract lithium from the Uyuni Salt Beach in the Andes has enabled the government to bring jobs to poor areas.
Nicole in HoF may.
Economic Minister Klaus of Baden, southwest Germany-
Erttemberg, head office of ACI Systems, said the lithium deal would help German automakers reduce their reliance on Asian car battery suppliers.
She added that the success of starting a business now depends on whether the two sides can align economic interests with environmental and social requirements.
Like Argentina and Chile, Bolivia is also part of South America.
Known as the \"Lithium Triangle \".
The country has one of the largest metal reservoirs in the world, but so far it has not built a large
President Evo Morales tried to stop lithium from being exported only as raw materials and Germany was willing to help Bolivia build production facilities, which played a key role in the decision to launch the joint venture.
When Bolivia seeks foreign partners to develop Uyuni, given China\'s dominance in the global lithium supply chain and its close relationship with La Paz, a Chinese company seems to be a natural choice.
Instead, Bolivia chose ACI Systems in southern Germany, which did not perform lithium tests but still defeated seven competitors from China, Russia and Canada.
Company and government officials from Bolivia and Germany told Reuters that support from German federal and regional ministries was key to persuading Bolivia to bid for ACI.