Pictures: Bolivia Seeks Economic Energy in Vast Lithium Stores

Desert Energy

Photograph by Ivan Alvarado, Reuters

They look like solar panels in the desert. In a way, they are—brine pools drying in the sun at the Soquimich lithium mine in northern Chile. This site in the Atacama Desert, known as the driest desert in the world, is also the largest lithium deposit currently in production. (See related photos: "Pictures: Cars Capture Solar Energy in the Chilean Desert.")

Thanks to extraction and processing here, Chile is the world's leading supplier of lithium, accounting for 35 percent of production last year. Neighboring Bolivia has even larger lithium resources than Chile, but has yet to exploit them. The high Andean region where these two South American nations meet with Argentina (currently the world's number 4 producer) is known as the "lithium triangle," holding 60 percent of the world's supply of the element, a place that has the potential to be the Saudi Arabia of an age driven by electric power.

Lithium is a key ingredient in glass, pharmaceutical, and grease manufacturing, but it's the light, silvery element's role in rechargeable battery production that has captured the world's attention. If current trends for electric cars, computers, and mobile devices continue, global demand for lithium could double by 2020, said Andrew Young, an industry analyst who advises hedge funds. "I think potential demand is tremendous, but it's a matter of working through technical issues," Young said.

Lithium-ion batteries offer high power and low weight in a single package, but the same chemistry that lends them their appeal increases the risk of overheating if not managed properly. The most notorious recent case of suspected thermal runaway involved the breakthrough aircraft, the Boeing Dreamliner 787, which was grounded in January after one battery overheated on a runway in Boston and another caught fire and forced a landing in Japan. (See related story: "Reshaping Flight for Fuel Efficiency: Five Technologies on the Runway.") The Dreamliner is expected to take to the skies again soon, but the incident touched off a new wave of concern over the stability of lithium batteries as a foundation for a new energy future.

Published May 2, 2013

Field of Dreams

Photograph by Ivan Alvarado, Reuters

Brine cooks in evaporation ponds at the Soquimich mine on the Atacama salt flat in northern Chile. The evaporation process uses sun and wind to increase the brine's concentration of lithium. The natural evaporation rate is high in the Atacama desert, and extraction of lithium from brine is less expensive and energy-intensive than from hard-rock minerals.

But compounds like potassium and boron must later be removed, which increases the cost of production. Across the border in Bolivia's Salar de Uyuni, the mineral deposits contain a high concentration of magnesium, which has long been seen as the main stumbling block to development. (See related story: "Afghanistan's Mineral Wealth Could Remain Elusive.")

Countries with far smaller lithium resources have had more success in extracting the element, most notably Australia, where production has recently been on par with that of Chile, and China, the world's number 3 producer.

Published May 2, 2013

Harsh Elements

Photograph by Ivan Alvarado, Reuters

A worker shields his face from the blazing sun as he inspects machinery at the Rockwood lithium plant in Chile. Bolivia is far behind Chile in developing its lithium resources, but the country has high expectations for the future. Morales, a socialist who forged an alliance with the recently deceased Hugo Chávez, former president of Venezuela, said Bolivia should use its lithium to spur domestic manufacture of batteries and electric cars. So far, however, there has been little progress, as the country has failed to attract outside funding for the project.

Bolivia is rich in natural resources, but much of the indigenous population lives in poverty. Morales, who rose to power with the overwhelming support of native peoples, has sought to nationalize the energy sector. He has pledged that the Bolivian state will profit most from its lithium reserves, but outsiders say Morales's fiery rhetoric may dissuade potential foreign investors.

Published May 2, 2013

Dream Dust

Photograph by Wara Vargas Lara, Demotix

Bolivian President Evo Morales grabs a handful of the product at the inauguration of the nation's first lithium carbonate plant in January.

Analysts say the future of the element hinges on whether and when automobiles transition from gasoline-powered internal combustion engines to electric motor drive. If all of the 60 million cars produced each year globally were replaced overnight with gas-electric hybrids, lithium demand would be five times current production levels, according to some analysts concerned about the sustainability of supply, says a U.S. Geological Survey report.

But Mares notes that the supply-demand situation may unfold in unpredictable ways. As battery technology advances, he predicts batteries will become smaller and require less lithium. In addition, he expects manufacturers will develop better methods of lithium recycling, and countries will discover new sources of lithium. "The market for lithium has significant potential but is uncertain," Mares said.

Published May 2, 2013

Scratching the Surface

Photograph by David Mercado, Reuters

The crystallized surface of Bolivia's Uyuni salt lake appears to crackle in the sun. Poor infrastructure, annual flooding, and prickly political considerations have hampered development of the largest reserve of lithium in the world, although Bolivia opened its first production plant here this year.

In the epicenter of the Uyuni salt flat, the lithium resource is just three to five meters (about 10 to 16 feet) thick, compared to the 30- to 35-meter (98- to 115-foot) depth available in Chile's Atacama flat, according to one analysis. The two sites, Uyuni and Atacama, have comparable resources, but in Bolivia the mineral is spread out over at least twice the surface area. A high concentration of magnesium increases the cost of production, but analysts say a lithium boom could lead to new extraction technologies that will lower mining costs.

Published May 2, 2013

Prickly Potential

Photograph by David Mercado, Reuters

A llama stands beside a cactus on rocky Incahuasi Island, with the expanse of Uyuni salt flat behind them. Benjamin Kohl, a Bolivia expert and associate professor at Temple University, said the government has fostered unrealistic expectations that lithium will jump-start the economy and add jobs for indigenous people. Kohl said lithium operations in Chile, Argentina, Australia, and China are likely to meet demand over the next decade and beyond. Although a Bolivian lithium boom could occur in the future, "over the next ten years, I don't see much possibility that it will transform Bolivia," Kohl said.

But Morales has maintained that lithium is an element that can alter his nation's future, and that extracting this raw material is just a first step to building new opportunities for Bolivians in manufacturing both batteries and electric vehicles. "From this brine, there will be lithium cars coming out of Bolivia," Morales told The New Yorker in a 2010 interview. "This is the dream. Without dreams, what's anything worth? Dreams become reality."

Published May 2, 2013