The race is on to get ahead in the green car era – and now Japan, already the frontrunner, is planning to offer economic aid to countries that produce rare earth metals or lithium in exchange for supplies of their resources.
That’s the report from Japanese business daily The Nikkei, which suggests the materials would be used in hybrid and electric vehicles.
It would be the first deal of its kind with the government planning to extend tens of billions of yen in loans by May or June to Bolivia to help build a 100MW geothermal power plant. This would in turn allow Japan to secure supplies of lithium with the country also planning to co-operate scientifically and technologically to build businesses around the material.
At the moment, around half of the world’s lithium deposits are believed to be in Bolivia’s Great Lake of Uyuni with the likes of Japan, Brazil and France eager to tap into the reserves. A decision about which companies will be rewarded the development work is likely to be reached by the end of June.
