Germany and Bolivia: Raw materials meeting for e-mobility!

Germany and Bolivia: Raw materials meeting for e-mobility!

Bolivia's dependence on raw materials, especially lithium, is catapulting it into the international spotlight. Foreign Minister Johann Wadephul emphasizes the importance of a closer partnership with the resource-rich country in order to reduce dependence on China. “We need to diversify more,” says Wadephul. Lithium is important not only for e-mobility, but also for the production of lithium-ion batteries, which we urgently need for electric cars and portable electronics. Bolivia has established itself as a key player in this area, with an estimated 23 million tonnes of lithium deposits in the Salar de Uyuni, the world's largest known but still untapped deposits.

However, the path to exploiting these valuable resources is difficult. The challenge in Bolivia is not only technical, but also political. A German-Bolivian joint venture failed in 2019 due to the distrust of the population ZDF reported. Former President Evo Morales and his successor Luis Arce bring rival views on the potential of lithium mining, adding strain to the political landscape.

Political rivalries and their consequences

Ahead of the presidential elections that took place in August and October, lithium mining became the central and emotionally charged issue in Bolivia. Calls to consult Indigenous people were often ignored. The indigenous advocacy group CUPCONL has banned the companies from entering its territory, and critics such as Julieta Uyuli Bartolome are calling for full community participation before any contracts are concluded. Nevertheless, Russian and Chinese investors are impatient and are pushing for quick contract conclusions, regardless of local conditions.

The German Automotive Industry Association emphasizes the need for stable raw material availability. But while other countries such as Chile are entering the market as the second largest lithium producer in 2024, Bolivia has only built pilot plants and is struggling with low yields.

A new chapter for Bolivia?

Bolivia's new president, Rodrigo Paz Pereira, elected in October, signals a change in politics. Wadephul will meet with him and the new Foreign Minister Fernando Hugo Aramayo in Santa Cruz. This exchange could be a game-changer for economic relations between Germany and Bolivia, especially in the context of the EU-Mercosur agreement, which aims to reduce tariffs and trade barriers and strengthen economic cooperation.

Despite the challenges, the partnership with Bolivia offers great potential. At a time when demand for lithium-ion batteries is constantly growing, increased cooperation with Bolivia could help Germany consolidate its sovereignty in important raw material issues and at the same time contribute to the global energy transition. Eyes are on the developments in this once considered poor country, which could now become an important player in the global lithium economy.