【SMM Analysis】Violence Erupts in Bolivian Congress Over $2 Billion Lithium Deals with China and Russia

Published: Jul 4, 2025 14:41
Source: SMM
The turmoil highlights Bolivia's long-standing struggle to balance resource exploitation with political and social stability. Despite possessing the world's largest lithium deposits, internal divisions have repeatedly stalled development. The current standoff could further delay projects involving Chinese and Russian firms, potentially disrupting global lithium supply chains.

Chaos broke out in Bolivia's congressional session on Thursday as opposition lawmakers doused Energy Minister Alejandro Gallardo with water and hurled garbage during heated debates over controversial lithium mining contracts with Chinese and Russian firms worth approximately $2 billion. The session was abruptly suspended amid the physical altercations.

The clashes stem from the government's push to fast-track foreign investment in Bolivia's vast lithium reserves, the largest in the world. While the administration views partnerships with Chinese and Russian companies as crucial for economic development, opposition groups and civil society organizations have fiercely resisted, claiming the deals favor foreign investors over national interests.

"They're swindling our country!" shouted opposition lawmaker Daniel Rojas during the session. Critics argue the agreements lack sufficient profit-sharing guarantees for Bolivia before its lithium resources are exported.

Alberto Pérez Ramos, president of the Potosí Civic Committee, accused the government of neglecting local communities. "Officials only care about lining their own pockets, not ensuring dignified lives for our people," he said. Protesters also fear environmental damage from accelerated mining operations.

Despite the backlash, Minister Gallardo defended the partnerships as "essential for national progress." However, opposition legislator Lissa Claros issued a stark warning: "If the government insists on this unconstitutional process, they will face mass mobilization from the people."

The turmoil highlights Bolivia's long-standing struggle to balance resource exploitation with political and social stability. Despite possessing the world's largest lithium deposits, internal divisions have repeatedly stalled development. The current standoff could further delay projects involving Chinese and Russian firms, potentially disrupting global lithium supply chains.

As tensions escalate, the government has yet to announce its next steps. With protests intensifying, the battle over Bolivia's lithium future appears far from over.

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