Bolivia seeks to transform its lithium policy with openness to private investment and ambitious production goals… Fundación Milenio describes the current Mining and Metallurgy Law as “flawed and ineffective.”
ISSUE 145 | 2025
ENERGÍABolivia
According to Fundación Milenio, Bolivia’s mining sector urgently needs to replace the “flawed and ineffective” Mining and Metallurgy Law (2014) with a new sector law. It argues that this legislative change is essential to chart a mining development strategy with a vision for sustainable, competitive, and inclusive mining, based on five main policy pillars: protection and promotion of mining investment; protection and formalization of mining cooperatives; socio-environmental sustainability; qualified human resources; and institutional capacity and good governance.
To this end, the foundation already has a Draft Bill for a New Mining Law, as well as a Proposal to Amend the General Cooperatives Law, emphasizing the urgency of adopting a new approach to lithium exploration and exploitation in Bolivia.
LITHIUM LAW
The proposal for a new Lithium and Evaporitic Resources Law, framed within an update of mining legislation, aims to position Bolivia as a major producer of lithium carbonate and lithium hydroxide, and as a competitive supplier in the international market. The goal is clear: to integrate into global battery supply chains and launch value-added projects, provided they are technically and economically viable.
The initiative, promoted by Fundación Milenio, calls for a radical shift from the current state-led strategy, opening salt flat mining to foreign investment and private participation throughout the production chain, thereby eliminating the state monopoly currently held by Yacimientos de Litio Bolivianos (YLB).
TWO MODALITIES FOR DEVELOPMENT
The draft bill proposes two investment pathways:
1. Direct participation of private capital, national or foreign, in extraction, refining, and derivative production, through Exploration and Prospecting Licenses and Mining Concession Contracts.
2. State-private partnerships under risk-sharing contracts, in which YLB partners with companies that bring capital, industrial experience, and proven technologies. This would allow for the reactivation and optimization of existing plants such as those for lithium carbonate and potassium chloride.
A key component of the reform is the transformation of YLB into a mixed corporation (YLB-SAM), with equity participation from green funds and private investors. This new entity could even be listed on international stock exchanges and acquire stakes in leading technology companies.
PRODUCTION AND INVESTMENT GOALS
The plan sets a target of producing 200,000 metric tons of lithium carbonate annually within 15 years. In the first stage, lasting 5 to 7 years, it projects reaching 100,000 metric tons per year, with exports valued at approximately USD 1.5 billion, supported by investments from five foreign companies contributing around USD 5 billion.
“…the plan foresees starting with 40,000 metric tons per year, generating USD 600 million in exports, with an estimated investment of USD 1.25 billion.”
It states that in an initial 4 year period from the enactment of the law, production would start at 40,000 metric tons per year, generating USD 600 million in exports, with an estimated investment of USD 1.25 billion.
MINING
Fundación Milenio considers this proposal a shift toward a mixed and competitive model, open to private capital and focused on efficiency, technology, and environmental sustainability. The aim is for Bolivia to overcome the limitations of its current model and establish itself as a relevant player in the global lithium economy.
Based on Fundación Milenio’s Mining Development Strategy, the objective would be to increase the mining GDP from USD 2.751 billion (2023 data) to USD 5.322 billion, mobilizing investments in new mining projects worth USD 5.085 billion over a 5 year period. It emphasizes that if this target is met, the mining GDP would represent 10% of Bolivia’s total GDP practically double its current contribution to the national economy.
