Bolivia’s state-owned Yacimientos de Litio Boliviano (YLB) has signed a landmark agreement with Russia’s Uranium One Group to construct a $976-million Direct Lithium Extraction (DLE) plant in the vast Salar de Uyuni, one of the world’s richest lithium-bearing salt flats. This facility marks a significant step forward in Bolivia’s efforts to capitalize on its massive lithium reserves and will be the first of its kind in the country.
The DLE plant is expected to produce 1,000 tonnes of battery-grade lithium annually at its initial stages, with plans to ramp up production to 14,000 tonnes per year. YLB president Omar Alarcón announced this during the signing ceremony, expressing optimism about the project’s potential to transform Bolivia into a major player in the global lithium market.
Situated at an altitude of 3,650 meters and spanning over 10,500 square kilometers, the facility will use advanced Russian direct sorptive extraction technology provided by Rosatom’s subsidiary, Uranium One. This technology is designed to improve lithium recovery rates to over 80%, compared to the mere 12% achieved through traditional evaporation methods. Operations at the plant are expected to commence in the second half of 2025.
One of the major benefits of DLE technology, according to Alarcón, is that it operates independently of weather conditions—a significant advantage over conventional lithium extraction techniques used in neighboring countries like Chile, which rely heavily on solar evaporation. This technological edge, combined with Bolivia’s abundant lithium resources, positions the country to become a significant contributor to the global battery metals supply chain.
Bolivia’s Broader Lithium Strategy
This DLE project is part of Bolivia’s larger strategy to industrialize its lithium resources. Last year, Uranium One, along with Chinese firms CBC and Citic Guoan Group, was selected through YLB’s first international tender to build pilot DLE plants. The successful scale-up of these plants could pave the way for Bolivia to achieve its goal of exporting 50,000 tonnes of lithium carbonate equivalent annually, as outlined by President Luis Arce.
In addition to the deal with Uranium One, YLB is in negotiations with Chinese firms CBC and Citic to develop DLE plants in Bolivia’s Uyuni and Coipasa salt flats. These partnerships aim to extend DLE technology to seven of Bolivia’s 28 salt flats, further enhancing the country’s ability to industrialize its lithium sector.
Despite these advancements, Bolivia has faced several challenges in developing its lithium industry, including political roadblocks and bureaucratic hurdles. Since the 1990s, the country’s attempts to harness its lithium reserves have been plagued by delays, and only 1,400 tonnes of lithium have been produced since 2018. Companies bidding to construct industrial plants must undergo extensive environmental assessments and community consultations, which can further slow progress. Moreover, analysts warn that the political fragmentation within Bolivia’s legislative assembly, compounded by upcoming general elections in 2025, may complicate contract approvals.
Challenges in Scaling DLE Technology
While DLE technology is central to Bolivia’s lithium strategy, experts caution that it remains relatively unproven at an industrial scale. Despite the government’s significant investments—over $800 million in DLE technology over the past two years—results so far have been modest. The technology’s effectiveness and scalability will be crucial to Bolivia’s ambitions to become a global lithium powerhouse.
Bolivia’s lithium reserves are estimated at 23 million tonnes, slightly higher than the 21 million tonnes estimated by the U.S. Geological Survey, making it the largest in the world. If Bolivia can overcome the technological and political challenges, the DLE facility and other lithium projects could unlock immense potential for the country’s economy and help meet the growing global demand for battery-grade lithium, a critical component in electric vehicles and renewable energy storage.
