Just days after Bolivia’s foreign minister accused a Japanese mining subsidiary for "plundering" their natural resources, the Ministry of Knowledge Economy announced that South Korea will join forces to develop Bolivia’s vast lithium resources.
That’s a big score, considering the South Korean government is thinking about building a lithium-ion battery manufacturing plant in Bolivia.
Remember, we’re talking about a veritable fortune in lithium. Bolivia holds more than half the world’s lithium reserves, to the jealousy of its South American neighbors.
Considering that lithium is a critical component for hybrid and electric cars, you can understand why the lithium hunt is on. The reward for savvy investors should be apparent by now. My colleague, Nick Hodge, is an expert on lithium investing. Last year, he was the first to help readers profit off several prospective lithium battery stocks.
Even though more than $1 billion could be spent on developing world-wide lithium projects, Bolivia’s wealth of the element remains the holy grail.
According to the law, exporting lithium is strictly prohibited. So as expected, Bolivia is being courted by would-be suitors. Countries are scrambling to develop the most efficient process to extract the element.
The reason is simple enough. The Bolivian government has said that it will offer development rights to the country to develop the best extraction process. That condition has countries like Japan, Korea and France salivating at the potential reward.
Of course, South Korea’s latest victory in attaining development rights is just the beginning to the lithium revolution.
Until next time,