Bolivia: the lithium battle

Originally published on Enanga's POV

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.”

But (the article concludes):
“As this issue was going to press, however, the Bolivian daily La Razon and in the regional publication America Economia reported that at present, the government of President Evo Morales intends to carry out exploitation of the lithium deposits at Salar de Uyuni all by itself, without any partners. This is because none of the offers made by multinational companies has yet to satisfy the government’s principal goal of moving away from the simple production of raw materials, and turning Bolivia into an industrialized country. To achieve that goal, the government plans to obtain financial assistance from a bank or from another institution, according to the reports.”

Says Bolivia’s mining minister:

"We will not repeat the historical experience since the fifteenth century: raw materials exported for the industrialisation of the west that has left us poor."

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:

How dare they refuse to be exploited! Do they not know who WE are? We are the US of F'ing A and we will pay them pennies for our lithium inconveniently located in their country and they will like it.
Oh, alright, we'll be charitable and double thier daily wages to $2, now gives us the Lithium before we invade and take it.
In spite of my hopes for Lithium battery technologies helping the evolution to plug-in hybrids, I'm happy to hear of a countries leader NOT selling out it's people. Morales is well know for his populism (similar to Chavez for sure and good friends as well).
If I were Morales I'd restrict raw exports to a trivial amount and force all the battery makers to build mines AND factories in Bolivia.

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.

Comments

[facter]

Cameroon=the anti-Bolivia run by ersatz French peacocks with black skin and high consumption lifestyles.

I know many people are praying for Biya to die, only to be replaced by the turn waiters, people who just want their turn to live high and have their very own chateaux in chez nous. Biya's death will solve NADA.

I have never seen a successful francophone country and there is a good reason. When transplanted into Africa, its sole purpose is to create mutants and chimera that worship France. You are not allowed to mess with it by the master and Africanize it. Francophones in Cameroon should jettison the entire thing like the people and government in Rwanda are doing. Vietnam did the same thing. The cast off the 18th century culture so they could advance.

[yahoo]

Ekosso you are an effing genius bringing out these kinds of truths. Unfortunately people are more concerned about Inoni this and Yang that. These people have nothing to offer because the remote controllers that you call the jackals are in the drivers seat and our people really are not curious about that invisible drivers seat. Folks I am sorry they are not in charge. It is a game. If you people are not paying attention at who is rigging the outcomes you are plainly wasting your time.

Lets go back to Lithium or sorry timber. This article in this weblog says that wastrel Franck Biya owns some kind of chateau in France, and because he has so much timber holdings as some kind of timber lord. it is legitimate. If that is so Franck is an effing criminal. Is he the mysteriously powerful asshole destroying Manenguba mountain forests that the people are not able to stop? Bakossi people where is you famous deadly juju or does your Institute of Jujulogical Research need funding?
He is destroying the patrimony for future generations because forest destruction devastates species, erodes the soil, deprives people of drinking water to name a few.

An Evo Morales kind of government in Cameroon would have severely restricted forest exploitation and forced the companies to employ reforestation techniques and replant the wood plus. They would also have to protect local wild life and will not be allowed to export unfinished wood. Mercedes and lexus would have to make the wood fascia of their luxury cars in Cameroon. Luxury furniture and art would have to be manufactured in Cameroon so that the people enjoy the benefits of the value added and if the foreign companies do not want it, the trees stay where they are and become more precious for future generations.
Mr Yang, can you bring about the end to deforestation and exploitation? If you cannot, you are just another impotent anglophone appointee prime minister straw men like your predecessors and I would question your judgement why you walked into this charade.

[Nji]

This is the best post I have read all day.

"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.

[Oyez]

I am glad that someone else noticed that very sharp statement. It is so quotable that the lady could patent it.