Cosmos Exploration has taken a major step into the global lithium market by signing an exclusive option agreement to acquire EAU Lithium Pty Ltd, unlocking access to Bolivia’s vast lithium resources and pioneering advanced extraction technology.
- Exclusive option agreement to acquire 100% of EAU Lithium Pty Ltd
- Access to Bolivia’s 23 million tonnes of elemental lithium resources
- Collaboration with Vulcan Energy Resources on proprietary A-DLE extraction technology
- Brine samples from Bolivian salars en route to Germany for testing
- Positioning Cosmos as a key player in sustainable lithium supply for global energy transition
Strategic Acquisition in the Heart of the Lithium Triangle
Cosmos Exploration Limited (ASX: C1X) has announced a transformational exclusive option agreement to acquire 100% of EAU Lithium Pty Ltd, a private lithium development company with a foothold in Bolivia’s Lithium Triangle. This move grants Cosmos access to Bolivia’s staggering 23 million tonnes of elemental lithium resources, the largest identified lithium resource globally, positioning the company at the forefront of the rapidly expanding lithium market.
Bolivia’s lithium reserves, concentrated in premier salars such as Salar de Coipasa, Salar de Empexa, and Salar de Pastos Grandes, represent a critical asset in the global energy transition. The Lithium Triangle, spanning Bolivia, Argentina, and Chile, holds more than half of the world’s identified lithium resources, underscoring the strategic importance of Cosmos’s entry into this region.
Innovative Technology Partnership with Vulcan Energy Resources
Central to Cosmos’s strategy is the collaboration with Vulcan Energy Resources (ASX: VUL), a global leader in sustainable lithium extraction technology. EAU Lithium has secured a licensing agreement to deploy Vulcan’s proprietary VULSORB® Adsorption-Type Direct Lithium Extraction (A-DLE) technology, which promises to overcome the historical challenges posed by Bolivia’s high-magnesium brines.
This cutting-edge A-DLE technology selectively extracts lithium from brines while minimizing freshwater use and enabling brine recycling, aligning with Bolivia’s commitment to sustainable resource management. The technology’s potential to reduce environmental impact marks a significant advancement over legacy reagent plus solar evaporation methods, which have struggled with cost and efficiency in the region.
Progress on Brine Sampling and Testing
During the quarter, EAU Lithium, in partnership with Zelandez, a globally recognized expert in lithium brine exploration, collected brine samples from Bolivia’s key salars. These samples are currently en route to Vulcan’s testing facility in Germany, where they will undergo rigorous evaluation using the VULSORB® A-DLE process. The results, expected within two months, will be pivotal in validating the technology’s effectiveness and advancing discussions toward industrial-scale production through joint ventures with Bolivia’s state mining company, Yacimientos de Litio Bolivianos (YLB).
EAU Lithium’s selection as the sole partner in Bolivia’s 2024 public tender process further cements its unique position and credibility in the region. This exclusivity, combined with Cosmos’s financial and strategic backing, enhances the prospects for establishing a scalable and sustainable lithium supply chain that benefits local communities and supports Bolivia’s broader economic ambitions.
Financial Position and Next Steps
Cosmos reported a cash balance of $167,000 at the end of December 2024, following expenditures related to exploration, the option agreement, and corporate costs. While the company acknowledges the need for additional funding to support ongoing activities, it remains engaged with financiers to secure future capital.
Looking ahead, the imminent arrival and testing of brine samples in Germany will be a critical milestone. Positive outcomes could accelerate Cosmos’s transition from exploration to industrialisation, potentially unlocking significant value from Bolivia’s lithium resources and contributing to the global supply of battery-grade lithium chemicals.
Broader Industry Context
The lithium industry is experiencing unprecedented demand growth, driven by the surge in electric vehicle adoption and renewable energy storage. Global lithium consumption has more than tripled since 2020 and is projected to continue rising sharply. While Australia currently leads lithium production, the Lithium Triangle’s vast resources and emerging extraction technologies like A-DLE are poised to reshape the supply landscape.
Cosmos’s strategic acquisition and technology partnerships place it in a strong position to capitalize on these trends, provided it can navigate the technical, financial, and geopolitical complexities inherent in developing Bolivia’s lithium sector.
Bottom Line?
As Cosmos advances its Bolivian lithium ambitions, the upcoming brine test results will be a crucial indicator of its potential to transform vast resources into sustainable supply.
Questions in the middle?
- Will the VULSORB® A-DLE technology prove effective on Bolivia’s high-magnesium brines?
- How will Cosmos secure the necessary funding to progress from option to full acquisition and development?
- What are the timelines and terms expected for a joint venture agreement with Yacimientos de Litio Bolivianos?