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Chile exports 50 percent of the world's lithium, mostly through a formerly state-owned company called SQM. The company mines lithium at the huge Atacama Salt Flat, tapping an estimated 2.5 million metric tons in lithium reserves. Julio Ponce Lerou is the son-in-law of the brutal military dictator, Augusto Pinochet, and is the man in control of formerly state-owned SQM.

Larou's control of Chilean lithium is a classic story of corruption common wherever privatization schemes have unfolded.

Unfortunately, Bolivia does not have the money to mine, refine and add value to lithium this way. Morales has stated that he is actively seeking private investment, but that Bolivia wants "partners, not bosses." This approach has scared away foreign investment, compounded by Morales' closeness to Venezuelan President and U.S. antagonist Hugo Chavez. There are also significant infrastructure problems. The Uyuni flats are remote and inaccessible by road and train, whereas the Atacama flats are very easy to reach. Bolivia has established a state-owned lithium company, and even has met local resistance. The local folk of Uyuni insist on sharing the benefits of mining. Bolivian leaders believe that increasing global demand for lithium will help trump these challenges and will allow the country to become the dominant producer.

“So if the US is not going to reduce its greenhouse gas emissions by 17 percent, which was a very weak target anyway, why should we make any commitment even if it does not have any legal teeth?” the official said.China also appears in no mood to sign the accord.