Chaos in Bolivian Congress over China, Russia lithium contracts

[Redator]

Bolivia’s energy minister was drenched with water and pelted with garbage on Thursday as chaos erupted in congress during a heated debate over lithium contracts with Chinese and Russian firms, worth a potential $2 billion in investments.

The deals, signed in 2023 and 2024, are with China’s CBC consortium, which includes battery giant CATL—and Russia’s Uranium One Group, a subsidiary of state nuclear company Rosatom. These contracts aim to establish direct lithium extraction (DLE) facilities in the Salar de Uyuni, part of the vast Lithium Triangle shared with Chile and Argentina.

Parliamentary debate was suspended in February after mounting public outcry, followed by a court in the Potosí region, home to the country’s largest lithium reserves, ordering a halt to both agreements. Recently, the lower Chambre of Congress had resumed discussions amid deepening political divisions.

Opposition lawmakers and allies of former president Evo Morales disrupted the session on Thursday, accusing the government of cutting an unfair deal and demanding greater guarantees that Bolivia will benefit before any lithium leaves the ground. 

“They are trying to swindle us,” said opposition legislator Daniel Rojas, speaking to mining outlet Rumbo Minero.

@ctvbolivia

Una acalorada discusión se dio entre legisladoras durante la sesión de la Cámara de Diputados, luego de decretarse un cuarto intermedio. El clima político se mantiene tenso en medio de debates clave para el país. #ctvbolivia #ctv #camaradediputados

♬ original sound – CTV Red Nacional Bolivia

Footage of the incident showed lawmakers clashing on the floor, with one deputy shielding himself with an umbrella. Congresswoman María Salazar was seen struggling with another parliamentarian. Outside the chamber, civic leaders from mineral-rich Potosí joined protests.

Tensions escalated further when Socialist senator Hilarión Mamani declared that the contracts would be “thrown away” if they reached the Senate.

Under Bolivian law, foreign companies must consult with local communities and complete environmental impact assessments before major industrial projects can proceed. Final approval rests with the legislature.

Lithium dreams

Government officials, speaking at recent public consultation meetings, have claimed Potosí alone could earn $800–$900 million in royalties over 30 years, or about $30–$35 million annually. They also insist the contracts are flexible.

Despite holding an estimated 23 million tonnes of lithium, the largest reserves in the world, Bolivia has long struggled to launch a viable lithium industry. Political turmoil, a state-dominated extraction model and high magnesium levels in its brines have hampered production. 

Bolivia aims to develop plants in seven of its 28 salt flats. (Image courtesy of YLB.)

While neighbouring Chile and Argentina are major global suppliers, Bolivia’s lithium remains mostly untapped.

The state-run company YLB opened its first industrial-scale lithium plant in late 2023, but it operated at just 17% capacity last year and is projected to reach only 23% in 2025.

The government argues that foreign partnerships are essential to jump-start the sector and promises Bolivia will retain 51% of profits.