(Photo from New York Times 02/03/09)

The production of hybrid or electric cars will require lithium, and Bolivia controls half of the world's known supply. Pressure is building in Bolivia to nationalize the lithium, but a new constitution could strengthen the claims of indigenous groups to that which lies in areas under their control. Bolivian President Evo Morales has already nationalized natural gas projects operating there, and has invested in a small lithium plant in an attempt to develop the mining operation. Bolivia will need outside investment in order to fully develop the lithium industry, but Morales' poor relationship with Washington may keep us on the sidelines. Morales treads a fine line as other lithium reserves are identified and/or alternative solutions are developed.