Brazil’s state-run oil corporation Petrobras is considering potential investments in Bolivia’s lithium-rich salt flats for industrial-scale projects, according to the country’s Energy Minister Franklin Molina.

In an interview with state-owned Bolivia TV on Tuesday, Molina detailed Petrobras’s interest in Bolivia, a nation focusing on electric vehicles and battery production. “They also showed an interest in visiting Bolivian salt flats and were motivated by our industrialization projects,” Molina said. He further highlighted that Bolivia’s government aims to progress on lithium, an essential component in battery technology.

On the same day, Bolivian President Luis Arce met with Petrobras CEO Jean-Paul Prates on the sidelines of an Amazon rainforest summit in Belem, Brazil. Later, Petrobras confirmed the meeting in a statement, which revealed that the discussions concentrated on evaluating “potential alliances and joint projects” in oil and gas, fertilizers, and “energy transition” projects. The latter term often refers to initiatives involving key battery metals like lithium.

Bolivia has extensive lithium resources within its vast salt flats, but commercial-scale production remains unrealized. A partnership with the Chinese battery manufacturer CATL is currently in the early stages.

Petrobras’s interest also extends to Bolivian natural gas, the country’s principal fossil fuel industry. “They’re not just talking about the continuity in exports of gas to Brazil, but also in developing future investments in new exploration projects to increase production,” Molina explained.

The Energy Minister also mentioned that a high-level Petrobras delegation focused on natural gas projects will visit Bolivia in the coming weeks, although he did not provide further details. Petrobras, in its statement, anticipates a company visit to Bolivia in September, suggesting continued collaboration and exploration of investment opportunities.

Lithium’s Crucial Role in Renewable Energy Transitions and the Growing Value in the Mining Industry

Lithium has become an essential material in the global push towards renewable energy and sustainability. Its unique electrochemical properties have made it a vital component in the batteries that power electric vehicles (EVs), renewable energy storage systems, and various consumer electronics.

The Rising Demand for Lithium

As governments around the world set ambitious goals to reduce carbon emissions and shift away from fossil fuels, the demand for EVs and renewable energy storage solutions has surged. This trend has, in turn, led to a significant increase in the demand for lithium, making its exploration and extraction a high-priority industry.

The growing need for lithium has led to increased exploration activities, focusing on regions rich in lithium deposits like salt flats and hard rock mines. Nations with substantial lithium reserves are finding themselves at the centre of a strategic global race to secure these resources. The value of lithium deposits has consequently skyrocketed, attracting investments and collaborations from various industries.

M&A Activities in the Mining Industry

The busy M&A environment in the mining industry further reflects the rising importance of lithium. Major corporations, startups, and even traditional oil and gas companies are engaging in partnerships, joint ventures, and acquisitions to stake their claims early in development.