(Yicai Global) June 20 -- Chinese electric car battery giant CATL is increasing its investment in two lithium salt processing plants in Bolivia by 40 percent to USD1.4 billion, according to a recent announcement by the South American country's government.

The two lithium salt processing plants will extract lithium from Bolivia's two salt flats, Uyuni and Oruro, and will start construction next month, the Ministry of Hydrocarbons and Energy said on June 18. The total investment is expected to reach about USD9.9 billion, it added.

The investment marks a milestone for the country’s energy sector and will cement Bolivia’s position as setting the benchmark for lithium industrialization, the report said, citing Bolivian President Luis Arce Catacora after he met with executives of the Ningde, southeastern Fujian province-based firm.

CATL, which counts Porche, Tesla and Ford, among its clients, agreed in January to partner with state-owned lithium company Yacimientos del Litio Bolivianos and invest USD1 billion in building two lithium salt processing factories, which will have an output of 25,000 metric tons of battery-grade lithium carbonate a year, according to the agreement signed with YLB and a consortium led by CATL on Jan. 20.

CATL, which is the world’s largest battery supplier with 37 percent of the market, plans to improve its layout in mineral resources and other raw materials through mining, investment and shareholding, joint ventures and recycling, the firm said in its 2022 financial report.

Editor: Kim Taylor