Industry Trend Analysis - Regulations To Hinder Lithium Sector's Growth - JAN 2016

BMI View: Bolivia's lithium and iron ore sector s will increasingly attract foreign investment due to the government's supportive stance to further develop the country's mining industry . However, both strict technical regulations and the country's inadequate infrastructure will curb production growth .

Bolivia's lithium sector will garner increasing investment interest, particularly from Chinese and European firms, as rising global deficits push prices higher, incentivizing miners to further develop lithium projects. As such, top importers of lithium, including China and Europe, will prioritize securing supply of the mineral, widely used in hybrid cars and consumer electronics. According to the US Geological Survey, global lithium consumption will increase by 9.5% annually during 2014-2020.

Government Regulations To Hinder Lithium Mining

Room For Production Growth
Select Countries - Lithium Mine Production, Share Of Global Total (%), 2014
Note: United States data is for 2013. Source: USGS

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