Bolivia Reverses Court Ruling Freezing Lithium Concession Deals

Bolivia Lithium

Court Overturns Suspension but Legislative Gridlock Remains

Bolivia’s Colcha K district court has overturned a ruling that froze two major lithium concession deals with Chinese and Russian firms. The contracts, worth nearly $2bn, involve Hong Kong-based CBC, a subsidiary of CATL, and Russia’s Uranium One Group, part of state-owned Rosatom. The court also ordered Bolivia’s legislative assembly (ALP) to pass laws mandating consultation with indigenous communities before approving natural resource projects.

The contracts had been suspended in May following a lawsuit from Nor Lipez’s indigenous communities, which claimed no environmental impact studies had been conducted. While the court has lifted the precautionary measures, it did not grant final approval for the deals, leaving the decision with the politically divided ALP.

Political Stalemate Threatens Lithium Investment

Yacimientos de Litio Bolivianos (YLB), Bolivia’s state lithium company, awarded the concessions in 2024 with a 51pc ownership stake. However, the ALP has stalled approvals for over six months, hindered by a lack of majority support among its polarized members. The impasse is exacerbated by the upcoming presidential election in August, with no clear frontrunner and President Luis Arce not seeking re-election.

Uncertainty is prompting Russia to explore lithium partnerships with Brazil, while market sources expect a decision to be postponed until a new president takes office. This delay risks slowing Bolivia’s ambitions to monetize its vast lithium reserves, critical for global electric vehicle battery supply chains.

The Metalnomist Commentary

Bolivia’s court reversal offers temporary relief for CBC and Uranium One, but legislative gridlock remains the true bottleneck. Without political consensus, foreign lithium investment could shift to more stable jurisdictions, challenging Bolivia’s role in the global battery supply chain.