Bolivia, one of the world’s largest lithium reserves, on Wednesday announced a $450 million deal with Russian state group Uranium One to mine the rare ore, which is critical to the clean energy transition, AFP reported.

The agreement involves the installation of a pilot plant for the extraction of lithium needed to produce batteries for electric vehicles, the two sides announced at a ceremony in La Paz.

Uranium One, which is owned by the Russian nuclear energy giant Rosatom, will take over all investments from here until 2025, totaling $450 million.

“This agreement validates the production and marketing model we offer to all companies that want to work with our lithium. We participate in all stages of the production chain,” said the President of Bolivia, Luis Arce.

Bolivia has some of the largest proven lithium reserves in the world, approximately 23 million tonnes. Together with Chile and Argentina, it forms the “lithium triangle”, the world’s largest deposit of this coveted lithium White gold.

Uranium One was selected from seven bidders in an auction launched by Bolivia’s state-owned Yacimientos de Litio Boliviano (YLB) more than a year ago.

“The pilot plant will produce 1,000 tons” of lithium carbonate in the first year before eventually producing 14,000 tons a year, said Carla Calderon, YLB president.

Bolivia expects its lithium exports to reach five billion dollars next year, more than sales of gas, its main resource until recently, but whose industry is in deep crisis due to a lack of investment. (photo: Dashark, Dreamstime.com)