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

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)