Lithium in Bolivia: a major priority for China's new ambassador
Summary:
Wang Liang (王亮), the new Chinese Ambassador to Bolivia, arrived on 5 Jan 2024
He specialises in Latin American affairs
China’s main priorities in Bolivia are natural resource-related, with Chinese companies set to invest large sums into Bolivia’s lithium
Previous attempts to commercialise Bolivia’s lithium fell through due to political instability
Legal hurdles and the potential for widespread protest currently pose a threat to the new Chinese agreements signed in 2023
It is likely, therefore, that Wang will seek to support the projects where he can so that they do not meet the same fate as the previous ones
In early January 2024, Bolivia welcomed a new Chinese Ambassador, Wang Liang (王亮). This is Wang’s first time serving as an ambassador, and at 48 years-old, he is relatively young for the role. Previously, Wang was serving as a Deputy Director-General of the Department of Latin American and Caribbean Affairs within China’s Ministry of Foreign Affairs (MFA).
Whilst details of Wang’s career are limited, it can be confirmed that he also previously worked at the Chinese Embassy in Argentina for around three years, starting in 2015 as a Counselor before being promoted to Minister Counselor. For more details on Wang Liang’s career, see the end of this article.
Currently, China’s main priorities in Bolivia are mineral resources such as zinc, gold, and lithium. In line with rising global demand, China has become increasingly interested in Bolivia’s lithium, which it needs for the production of lithium-ion batteries. Last year, two major agreements were signed by Chinese companies for planned investments into Bolivia’s lithium industry, both in partnership with Bolivia’s state-owned lithium company Yacimientos de Litio Bolivianos (YLB).
The first agreement was signed in January 2023, which saw a consortium of Chinese companies CATL, BRUNP and CMOC (CBC) agree to invest $1.4b to build two lithium extraction plants. The second was signed in June, where CITIC Guoan agreed to invest $857m into a project in the Uyuni salt flats. The only other agreement signed by YLB in 2023 was with the Russian Uranium One Group for a $600m investment in another lithium project.
Chinese companies have been involved in Bolivia’s recent efforts to capitalise on the country’s lithium reserves since as early as 2011. For context, Bolivia has the largest lithium reserves in the world, with 23 million tons, however, the country has struggled to move beyond pilot projects and small-scale production.
Prior to 2023, the closest a Chinese company had come to the commercial production of lithium in Bolivia was in early 2019, when Xinjiang TBEA was chosen to be a strategic partner of YLB for projects in the Coipasa and Pastos Grandes salt flats. This was the second major joint venture YLB had entered into, having made a similar agreement in 2018 with the German company ACI Systems Alemania (ACISA) for a project in Salar de Uyuni.
These ventures were short lived, however. Protests over lithium royalties fed into a political crisis caused by Bolivia’s 2019 election. Just days before ex-President Morales resigned, he cancelled the partnership with ACISA. Whilst some reports in 2020 suggested that the Chinese deal had survived, it is clear that the project did not progress any further.
Moving forward, Wang Liang and his colleagues at the Chinese embassy will be closely monitoring the progress of the current lithium projects so that they do not meet a similar fate.
The biggest threats to China’s lithium ambitions in Bolivia are lingering legal restrictions that prevent YLB from having private partnerships, as well as an unresolved dispute over royalties. There are currently two draft bills being deliberated by the Bolivian Senate that should address these problems, however, nothing has been passed yet.
If the dispute over royalties is not resolved, the influential Potosinista Civic Committee (Comcipo) might try to disrupt lithium production, just as they did in 2019. Indeed, when CBC’s venture was first announced, Comcipo came out in opposition. If Comcipo do not find the proposed changes to royalties satisfactory, this could spell trouble for the Chinese projects.
Looking at Wang’s recent activities, it is clear that lithium is a priority for him.
On 17 Jan, Wang attended a signing ceremony where the Chinese consortium CBC agreed to invest an additional $90m for a pilot plant that uses direct lithium extraction technology. Also in attendance was the Bolivian President, Vice President, as well as other government ministers. Sat next to Wang at the event was the President of YLB, Karla Calderón.
It was reported last week, that Wang Liang has already met with the Bolivia-based heads of several major Chinese enterprises, including CATL and CITIC Guoan.
As part of the Chinese embassy’s Chinese New Year celebrations, Wang recently paid a visit to Bolivia’s lithium-rich region of Potosí to meet with members of the local Chinese community. Whilst in Potosí, he also met with the police chiefs of both the province and city. During their meeting, Wang asked for them to provide assistance to the Chinese people in Potosí if necessary. Such assistance could be required if any more protests against lithium production take place.
Even though Wang has already paid a visit to Bolivia’s Minister of Mining and Metallurgy, because Bolivia’s state-owned lithium producer YLB actually falls under the purview of the Ministry of Hydrocarbons and Energy, Wang will also want to establish a good relationship with the relevant Minister, Franklin Molina Ortiz.
The Bolivian Government must be feeling confident that the issues relating to YLB private partnerships and royalties will soon be overcome, as it recently launched another international tender for lithium projects. We should therefore expect to see more Chinese companies seek to capitalise on Bolivia’s vast lithium reserves in the future.
Wang Liang (王亮), Chinese Ambassador to Bolivia
Recent Career*:
2015 - 2018: Counselor | Minister Counselor | Chargé d'Affaires, Chinese Embassy in Argentina
2019 - 2023: Director of the General Office | Minister Counselor | Deputy Director-General, Department of Latin American and Caribbean Affairs, MFA
2024 - Present: Chinese Ambassador to Bolivia
Education:
Bachelor of Arts, Department of Foreign Languages, Shanghai International Studies University
*Information compiled using open-source data and may be incomplete. Exact dates were also not always available.