Cosmos Exploration (ASX: C1X) has signed an exclusive option agreement to acquire private lithium development company EAU Lithium.

EAU is strategically positioned in the world-class “Lithium Triangle” in South America.

The agreement will enable Cosmos to support EAU in its groundbreaking work with Bolivia’s state-owned lithium company Yacimientos de Litio Bolivianos (YLB), in partnership with major lithium development and renewable energy player Vulcan Energy Resources (ASX: VUL).

Brine testing deal

EAU, which is part-owned by Vulcan, recently signed a deal with YLB to test lithium brines from Bolivia’s premier salt lakes (or salars) using Vulcan’s proprietary VULSORB direct lithium extraction technology.

The technology, which employs minimal freshwater, recycles spent brines back into the salar and leverages geothermal energy to offset operational energy costs.

The test results will determine the potential to progress towards a joint venture for the sustainable development of high-value lithium brine processing facilities.

Previous extraction attempts using chemical plus solar evaporation-based methods have faced challenges due to the high magnesium content of the salars.

If successful, Bolivia could become a strong global contributor to the energy transition.

Global energy transition

Cosmos executive chair Jeremy Robinson said the EAU acquisition would strengthen the company’s position in the global critical minerals sector and underscore its commitment to advancing the global energy transition.

“We are excited by the opportunity to partner with one of the world’s leading lithium and renewable energy developers to unlock a largely untapped source of lithium,” he said.

“This is a major step forward for Cosmos as we advance our critical minerals strategy and seek to deliver value to our shareholders in the clean energy sector.”

Large lithium resource

Bolivia hosts what is believed to be the world’s largest lithium resource, estimated at approximately 23 million metric tonnes, mostly concentrated in the northern district of the Lithium Triangle.

Salt flats at Salar de Uyuni, Salar de Coipasa, Salar de Empexa and Salar de Pastos Grandes collectively account for 22% of the world’s known lithium resource base.

The Bolivian government is seeking to unlock these vast resources to drive economic growth and establish Bolivia as a global leader in the lithium supply chain.