Critical Minerals Governance in Bolivia: Prior Consultation, Rights, and International Standards

As the transition to green energy intensifies to reduce global greenhouse gas emissions, the geo-political strategic importance of countries that produce critical minerals such as lithium has increased exponentially. Lithium is vital to produce batteries to power electric vehicles and facilitate a transition away from dependence on fossil fuels for the transportation sector. While lithium has been pitched as “white gold,” host communities in the countries with this potential mineral wealth face many of the same socio-economic and environmental challenges as other countries where conventional forms of mining take place. Bolivia has one of the largest known lithium reserves in the world, followed by its neighbors Argentina and Chile. Lithium extraction, like oil and gas, can provide significant revenue for both national economies, government coffers, and investments in local communities. This paper examines the various governance mechanisms in Bolivia that span international standards and domestic practices, including prior consultation. Because Bolivia is still negotiating and beginning to implement contracts between its state-owned company, Yacimientos de Litio Bolivianos (YLB), and foreign investors, it is possible to trace the role of civil society actors in the lithium sector, especially when it comes to understanding socio-economic and environmental impacts. To illuminate the role of prior consultation and understandings of the socio-economic, justice, and environmental impacts of mining on the communities living near the Salar de Uyuni, our study draws upon meetings with community members across the Salar de Uyuni in August and September 2024. We also carried out a literature review of relevant policy documents, covering prior consultation, environmental safeguards, and human rights globally.