Bolivia which has significant lithium reserves that are essential for electric car batteries, will receive $1.4 billion in investments from China and Russia, the South American country's government announced on Thursday.

China's Citic Guoan and Russia's Uranium One Group, both with strong state participation, will partner with Yacimientos de Litio Bolivianos (YLB) to install two lithium carbonate plants, President Luis Arce said at a public event.

Due to its application in renewable energy storage systems and rechargeable lithium-ion batteries for automobiles, lithium has grown in significance as the world transitions to greener energy sources.

Representatives of the three corporations from Bolivia, China, and Russia were present when the deal was signed.

The government of Arce and Chinese group Catl Brunp & Cmoc (CBC) inked yet another deal earlier in January for the installation of two lithium battery factories.

According to the government's presentation, Russia's Uranium One Group will invest $578 million in a plant in the Pastos Grandes salt flats and China's Citic Guoan $857 million in a second plant north of the Uyuni salt flats, both in the southwest Andean department of Potosi.

The Ministry of Hydrocarbons and Energy said in a statement that "each of the complexes will have the capacity to produce up to 25,000 metric tons per year."

Construction of the plants will start in the upcoming three months.

Bolivia has certified its lithium reserves in the Uyuni salt flats at 21 million tons and affirmed that it is the world's biggest source.

The South American country has had difficulty using its vast lithium deposits, in part because of geography, political unrest, and a lack of technological know-how.

The Ministry of Hydrocarbons reported last January that by 2025 it expects to export $5 billion of lithium, which would exceed its earnings from natural gas, which in 2022 generated revenues of $3.4 billion and is currently the country's main source of income.