Bolivia: the lithium battle
I hear Cameroon has a new prime minister. I also hear hat there is a law to legalise homosexuality and abortion in Cameroon. The first bit of news is largely insignificant in that nothing will change. The second bit is more important and I want to register my support for that initiative, whatever the motives a number of commentators have ascribed to those who tabled the bill (one hears of the homosexual lobby in the corridors of Cameroonian power). Na dem mbanga, na dem oya. In English, none of my business.
What I really want to talk about is lithium. Lithium as in the element on the periodic table. Lithium as in the drug that is given to manic depressives.
But most of all, lithium as in batteries. Lithium as in Bolivia has got lots of it and a lot of biggies want it because lithium ion batteries may power cars in the future.
Poor Bolivia. Enter the jackals.
We all know, from examples like the columbite/tantalite tragedy in the DRC, what happens when a country has zero governance, zero capital for investment, stupid leaders and/or warlords, and great mineral wealth.
Bolivia does have governance with Evo Morales, the “ native” with a vision who became president. He is not much liked in some circles because he nationalises things for the benefit of Bolivians whereas other people think they should come in and “ develop” the product for their own benefit. Some commentators have been apoplectic about this,as you’ll see later if you click on the link to comments on an article about Bolivia’s lithium.
The Guardian spins it as a lost opportunity if Evo Morales and union leaders continue to be stubborn in refusing foreign domination and profiteering in lithium exploitation: “their politics could stymie yet another opportunity for Bolivia to improve the lives of its citizens.” Like the Lithium is going to get up and walk if big multinationals are not immediately allowed in to do as they please.
In the same vein,
someone is worried, or claims to be worried, that if Bolivia does not
sell the Lithium now, no one will want it later:
Juan
Carlos Zuleta, an economist in La Paz, said: “We have the most
magnificent lithium reserves on the planet, but if we don’t step into
the race now, we will lose this chance. The market will find other
solutions for the world’s battery needs.”
In Cameroon, when you offer a landlord or landlady rent that is insulting low compared to what s/he invested in the house, s/he tells you that houses do not need to be fed. So too with Bolivia’s lithium.
Nationalism is bad if practiced by other people, you see. Never mind that idiots round the world buy t-shirts with “ western”, especially American, national flags on them. Or is that commercialism rather than nationalism? Maybe. But what do you call it when a Dubai-based company tries to muscle in on American ports management and is blocked? Why is it that it is okay to refuse to cede control of sensitive (from a security perspective) or potentially highly lucrative national industries to foreigners when one is rich but not so when one is poor? I will be told that some developed countries have sold water supply companies to foreign owners. True. But if a French owned company tries to mess with Britain because it controls basic British utilities, how far do you think that will go? It's all about power.
Anyway,
let’s return to lithium and Bolivia. Bolivia has about 50% of the
world’s lithium supply. Lithium is being touted as the future fuel for
electric cars. We’re running out of oil. We still want to buy and drive
our cars. The carmakers want to stay in business. So guess who’s very
interested in Bolivian lithium?
As I said, enter the jackals.
“For
example, French manufacturer Bolloré has presented a proposal to Evo
Morales, president of Bolivia, aimed at the massive exploitation and
commercialization of the Uyuni mineral deposits. The race for Bolivian
lithium has also been joined by Japan’s Mitsubishi Motors, followed
closely by General Motors, which was engaged in talks with the Bolivian
government before GM declared bankruptcy this year.”
Says Bolivia’s mining minister:
Just in case you think this is a small story, you should visit this site to see how lively the discussion is becoming
The best post on the site, which summarises the point of view of most thinking third-worlders, is this rather entertaining one:
Of course, when the Bolivians say
"We
are building every¬thing from scratch. This is a historic moment. We
are working for ourselves." Rich countries would no longer plunder
Bolivia's resources. "There is a new dialectic."
Others call it “delirium”
There is even an article entitled “ Lithium could be Bolivia’s future if politics don’t get in the way”, politics being, of course, poor people having opinions about their resources that are at odds with what rich people think.
But the Lithium story has another facet:
Another
key point that the buzz about lithium batteries doesn't address is that
LiIon batteries can only store energy; they cannot create it.
So in chasing after Bolivian lithium we’re not try to reduce energy dependence or consumption. We just want to go and get it from someone else now oil is running out and people like Chavez are being naughty.
I would have thought the issue at stake here would be not getting at Bolivia’s lithium, but reducing our consumption of energy. But I am mistaken. Who wants to wash clothes by hand or walk to work?
Anyway, I hope Morales lives long and stands firm. He’s got the right idea.
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