Cosmos Exploration has secured an exclusive option to acquire EAU Lithium, partnering with Vulcan Energy to deploy cutting-edge Direct Lithium Extraction technology in Bolivia’s lithium-rich salars. This strategic move positions Cosmos at the forefront of sustainable lithium production in the world’s largest lithium resource base.
- Exclusive option to acquire EAU Lithium, granting access to Bolivia’s premier lithium salars
- Partnership with Vulcan Energy to implement advanced Adsorption Direct Lithium Extraction (A-DLE) technology
- Focus on overcoming high magnesium brine challenges unique to Bolivia’s lithium deposits
- Brine testing scheduled in Germany with industrialization agreements in negotiation with Bolivia’s Yacimientos de Litio Bolivianos (YLB)
- Potential issuance of shares representing 50% of Cosmos post-completion capital and cash payment as part of acquisition terms
Bolivia’s Lithium Potential Meets Advanced Extraction Technology
Cosmos Exploration Limited (ASX: C1X) has taken a significant step towards unlocking Bolivia’s vast lithium resources through an exclusive option to acquire EAU Lithium, a local company with established ties to Bolivia’s lithium authority, Yacimientos de Litio Bolivianos (YLB). This move is complemented by a strategic technology partnership with Germany-based Vulcan Energy Resources, a leader in sustainable Direct Lithium Extraction (DLE) technology.
Bolivia holds approximately 23 million tonnes of lithium, representing 22% of global lithium resources, primarily located within the Lithium Triangle. Despite this, Bolivia has historically lagged behind its neighbors in lithium development due to technical and environmental challenges, particularly the high magnesium-to-lithium ratios in its brines that complicate traditional solar evaporation extraction methods.
Addressing Extraction Challenges with A-DLE Technology
Cosmos’ partnership with Vulcan Energy aims to deploy Vulcan’s proprietary VULSORB® Adsorption Direct Lithium Extraction (A-DLE) technology, which offers a faster, cleaner, and more efficient alternative to legacy solar evaporation. This technology selectively extracts lithium within hours to days, significantly reducing water usage and land footprint, critical factors in the environmentally sensitive Andean region.
Vulcan Energy’s zero-carbon lithium production credentials and recent successes in Europe and Argentina provide Cosmos with a proven technological edge. The collaboration is designed to specifically mitigate Bolivia’s high magnesium brine challenges, potentially unlocking a sustainable pathway for industrial-scale lithium production.
Local Expertise and Strategic Access Through EAU Lithium
EAU Lithium brings indispensable local expertise and political capital, having cultivated strong relationships with YLB and secured exclusive rights to test brines from key salars including Salar de Coipasa, Salar de Empexa, and Salar de Pastos Grandes. The company recently signed a technology agreement with YLB, positioning it well for upcoming industrialization agreements contingent on successful brine testing.
Brine samples are currently being collected and shipped to Germany for testing with Vulcan’s technology, with results expected between March and June 2025. These tests will be pivotal in advancing negotiations for long-term joint ventures with YLB, which would mark a critical milestone for Cosmos’ entry into Bolivia’s lithium sector.
Financial and Corporate Implications
Cosmos has paid a $150,000 option fee securing 12 months of exclusivity, extendable by mutual agreement. The exercise of the option involves issuing shares equivalent to approximately 50% of Cosmos’ post-completion issued capital, around 82.5 million shares, and a $525,000 cash payment. EAU Lithium will also appoint two directors to the Cosmos board, strengthening governance ties.
Importantly, the transaction does not require ASX re-compliance, allowing Cosmos to maintain its current listing status. With a market capitalisation of around A$3.5 million and a tight capital structure, Cosmos presents an attractive risk-reward profile for investors betting on the lithium transition and Bolivia’s untapped potential.
Looking Ahead: Industrialization and Market Positioning
The coming months will be critical as brine testing results emerge and industrialization agreements with YLB are negotiated. Success here could position Cosmos as a first-mover in Bolivia’s lithium industry, leveraging sustainable extraction technology aligned with global ESG trends and the accelerating demand for battery metals.
While challenges remain, including regulatory approvals and the technical complexity of Bolivia’s brines, Cosmos’ integrated approach combining local expertise, advanced technology, and strategic partnerships offers a compelling blueprint for unlocking one of the world’s largest lithium resources.
Bottom Line?
Cosmos’ bold move into Bolivia’s lithium sector could redefine its growth trajectory—pending critical test results and government partnerships.
Questions in the middle?
- Will the brine testing in Germany validate the effectiveness of Vulcan’s A-DLE technology on Bolivia’s high magnesium brines?
- How quickly can Cosmos and EAU Lithium secure industrialization agreements with YLB to move towards production?
- What are the potential regulatory or geopolitical risks that could impact the project’s timeline or viability?