The CITIC Guaon Group, a Chinese state company, has signed an agreement with Bolivia to develop lithium and other resources in the South American nation.
The agreement will involve the exploration of the Coipasa salt flats to quantify known reserves of potassium and lithium.
Lithium is a silvery white material which has become more in demand since it has been used in rechargeable batteries. It is also used in the production of ceramics and has some other industrial uses as well. Potassium, a soft silvery-white alkali metal, is widely used as a fertilizer and in food production as well as other industrial applications.
The president of the Bolivian state company which was created in 2010 to develop lithium among other resources is Luis Alberto Echazu. He said that the Chinese state run company has agreed to explore the area 300 km south of La Paz close to the Chilean border.
As per Bolivian geologists the nation is believed to have more than 70% of the earth’s reserves of lithium. With the help of the CITIC Guaon Group the Bolivian government hopes to benefit from this existing resource.