RPT-INTERVIEW-LG may seek to tap Bolivian lithium deposit

(Repeats, adds dropped words to title in second paragraph)
By Eduardo Garcia
LA PAZ, Feb 9 (Reuters) - The LG Group, whose electronics
are a household name in many countries, is eyeing Bolivia's
Uyuni salt lake to gain a foothold in one of the largest known
deposits of lithium, used in rechargeable batteries.
The South Korean company, which recently entered into an
agreement to supply General Motors Corp. with
lithium-ion batteries, has made overtures to the government to
start talks, Bolivia's state mining director, Freddy Beltran,
told Reuters.
"LG has expressed a willingness to start talks, to make a
proposal. For what we know they have an agreement to produce
lithium batteries for General Motors," Beltran said in La Paz.
Lithium batteries are used to power laptops, hybrid
vehicles and cell phones, and demand is seen rocketing if car
makers develop electric cars on a major scale.
France's Bollore and Japan's Mitsubishi and
Sumitomo are already in the race to tap into Uyuni's lithium
riches and help create a full-fledged lithium industry in the
landlocked South American country.
Last year, Morales laid the cornerstone of a $6 million
pilot plant at the lake, a tourist hotspot high in the Andes
mountains at some 12,100 feet (3,700 meters) above sea level,
and the government hopes it will lead to construction of a $250
million lithium facility.
"We want to finish building the infrastructure in December,
so that the plant can begin production in 2010," Beltran said.
The top priority of the government of President Evo Morales
is to maximize the benefits that Uyuni may bring to Bolivians.
Bollore, Mitsubishi and Sumitomo have presented bids to
mine lithium and export it as a raw material, Beltran said. But
the Bolivian government wants to produce lithium hydroxide,
lithium chloride, metallic lithium and even batteries in
Bolivia to maximize job creation and revenue from the mineral.
Beltran said negotiations with other companies have not
advanced and that the Morales government would welcome a
proposal from LG.
"There haven't been any developments (in the negotiations).
None of them has made a proposal including (the creation of a
lithium) industry," Beltran said.
LG Chem Ltd <051910.KS>, South Korea's largest chemicals
maker, is to build lithium-ion batteries for General Motors
Corp. GM unveiled plans in January to invest $30 million in a
plant to build next-generation batteries for its all-electric
Chevrolet Volt.
With automakers touting high-profile plans for
environmentally friendly electric cars, LG Chem is also in
talks with other car companies about supplying batteries for
electric vehicles, including plug-in hybrids.
Beltran said Morales may meet with executives from mining
companies to talk about the Uyuni salt lake in a trip to Russia
and France this month.
Since taking office three years ago, Morales has endeavored
to increase state participation in energy and mining and has
raised taxes on foreign companies in a bid to increase state
revenues from the country's natural resources.
Stretched between distant Andean peaks like a shimmering
white carpet, Uyuni is the world's biggest salt lake and home
to pink flamingos, 1,000-year-old cacti, rare hummingbirds and
hotels built entirely from blocks of salt.
Beltran said Bollore, Mitsubishi and Sumitomo part of a
scientific committee tasked with deciding what method the plant
will use to extract lithium.
(Reporting by Eduardo Garcia; editing by Pav Jordan and David
Gregorio)
((eduardo.garcia@thomsonreuters.com; +59 1 2 244 4866; Reuters
Messaging eduardo.garcia.reuters.com@reuters.net))
Keywords: BOLIVIA LITHIUM/

(C) Reuters 2009. All rights reserved. Republication or redistribution of
Reuters content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Reuters. Reuters and the Reuters
sphere logo are registered trademarks and trademarks of the Reuters group of
companies around the world.

nN09543386