India Signs MoU to Share Bolivia’s Vast Lithium Deposit

Both sides agreed to work together for exploration and extraction of the vast Lithium deposits of Bolivia. Lithium is a key resource used in making batteries that India needs for its clean technology initiatives such as increased use of electric cars.

India after signing a Memorandum of Understanding (MoU) with Bolivia, has leveraged its way into the lithium reserves of the South American nation for exploration and extraction of lithium, a prime component used to power electric vehicles.

In a joint statement, issued after talks between President Ram Nath Kovind and his Bolivian counterpart Evo Morales Ayma, both the countries “Agreed to forge a mutually beneficial partnership to facilitate Bolivian supplies of lithium Carbonate to India and foster joint ventures for lithium battery/cell production plants in India.”

This move will make Bolivia, which is known to have one-fourth of the world’s lithium reserves, one of the major provider of metal for India’s e-mobility and e-storage needs. 

The two countries have also agreed to facilitate mechanisms for the commercialization of Lithium Carbonate and Potassium Chloride produced in Bolivia by Yacimientos de Litio Bolivianos Corporación (YLB – Corporación), the statement added. 

Additionally, India has also proposed a follow-up visit to Bolivia by a delegation from the National Mission on Transformative Mobility and Battery Storage of India for taking forward the cooperation in the area of battery storage solutions.

The President said that India takes pride in its development cooperation partnership with Bolivia under the framework of South-South Cooperation. Announcing a $ 100 million Line of Credit to Bolivia for financing development projects in sectors that Bolivia may choose. 

Following the delegation-level talks, the two Presidents witnessed the signing and exchange of eight MOUs that concern fields of culture, visa waiver for diplomats, the exchange between diplomatic academies, mining, space, traditional medicine, the establishment of Centre of Excellence in IT and the Bi-Oceanic Railway project. India offered to explore the possibility of Indian Railways working with Bolivia on this project that is crucial for Bolivia.

Further, Bolivia also joined the International Solar Alliance by signing the framework agreement on International Solar Alliance.