LA PAZ, Bolivia -- South Korea and Bolivia agreed on Friday to cooperate on a lithium battery business with the two countries seeking to set up a joint venture here to produce parts for rechargeable batteries.

In April 2009, the two countries signed a deal to develop lithium resources in the South American country, which boasts nearly half of the world's known reserves.

The deal allows South Korean firms such as POSCO and SK Innovation Co. to participate in a project to develop the world's largest salt flats in southern Bolivia.

Lithium is widely used in rechargeable batteries for laptops, mobile phones and electric cars.

Japan, China, France and Brazil have also expressed interest in developing lithium reserves in Bolivia. South Korea, however, is the only one that's a key partner for the project. (Yonhap News)