Nov. 24 (Bloomberg) -- Bolivia and Iran will cooperate on a study of Bolivian lithium reserves, the largest in the world, under an agreement signed by presidents Evo Morales and Mahmoud Ahmadinejad.

Speaking today at the signing ceremony at the Bolivian presidential palace in La Paz, Ahmadinejad said the exploration is part of Iran’s efforts to boost cooperation with the Andean nation. His visit marked the inauguration of a hospital and a milk processing plant his government helped finance.

“Although there’s a large geographical distance between our countries, I want to assure you that our hearts, our thoughts and our ideals are very close,” the Iranian leader said.

Iran will join a scientific committee dedicated to the study of the reserves that includes Brazil’s Ministry of Science and researchers from companies such as France’s Eramet SA and Bollore SA. Bolivia’s Salar de Uyuni, a salt flat located in the Potosi province, contains about half the world’s known 11 million metric tons of lithium reserves, according to a U.S. Geological Survey report.

Lithium is used to make batteries for portable electronics such as cellular phones and laptop computers, and may become a leading source of energy for electricity-powered cars.

Iran’s state oil company plans to open an office in Bolivia, Ahmadinejad also said.

“I’m a big admirer of you and your people,” Morales said at the event in La Paz, speaking to Ahmadinejad. “Our people have the mandate to liberate ourselves from the empires.”

Ahmadinejad’s visit to Bolivia comes after meetings with Brazil’s President Luiz Inacio Lula de Silva, which stirred protests among Jewish and gay communities in Rio de Janeiro. He will finish his three-country Latin America tour in Venezuela, where he will meet with President Hugo Chavez.

To contact the reporter on this story: Jonathan Levin in La Paz at jlevin20@bloomberg.net

Last Updated: November 24, 2009 15:04 EST