State-owned Bolivian company Yacimientos de Litio Bolivianos (YLB) has announced the signing of two contracts with Russia's Uranium One Group and China's CBC for the establishment of lithium carbonate industrial plants in the department of Potosí.

Confirming the agreements, YLB CEO Omar Alarcón said in a statement that they guaranteed royalties for the department of Potosí, He added that the contracts would likely be adjusted “when the Plurinational Legislative Assembly approves the Lithium and Evaporite Resources Law.”

Bolivia's Ministry of Hydrocarbons and Energy (MHE) said that Uranium One and CBC would “invest more than $2 billion, covering 100% of the construction cost and assuming full financial risk,” as per the contracts.

The industrial plants will be located south of the Salar de Uyuni salt flat and use the Direct Lithium Extraction (DLE) method, “which allows for the recovery of more than 80% of the available lithium, consumes less water and energy, and is much more efficient compared to the traditional evaporation pool method, whose yield does not exceed 30%,” the MHE added.

The contract between YLB and Uranium One provides for the implementation of an industrial plant for the production of 14,000 metric tons per year of lithium carbonate in three phases, with an investment of more than $975 million.

As part of its deal, CBC will invest $1.03 billion for the implementation of two industrial plants, each in two phases, one with a capacity of 25,000 metric tons per year and another of 10,000 metric tons per year.