Bolivian lithium brines emerging from the shadows cast by Chile and Argentina
Bolivia's salars are estimated to host about 22% of the world's known lithium resources
Lithium brines in the country saddled with high levels of magnesium that make it expensive to process
Cosmos Exploration is counting on A-DLE technology developed by Vulcan Energy to overcome this hurdle
The famed Lithium Triangle encompasses parts of Chile, Argentina and Bolivia and supplies the majority of the world's lithium and hosts the lion's share of identified reserves.
This lithium is contained within salt lakes (salars) that host mineral-rich brines that have to be pumped up to surface and traditionally left in evaporation ponds to be concentrated with reagents before being processed.
These are globally significant due to their exceptional lithium enrichment that is due to a combination of geological, climatic, basin morphology and hydrological factors that create ideal conditions for lithium concentration.
However, while Bolivia's salars are estimated by the US Geological Survey to host an estimated 23Mt of contained lithium, about 22% of the world's known lithium resources, most of the attention has been monopolised by Chile and Argentina.
Chile is the second largest producer of lithium after Australia, while companies have snapped up, grown and carried out extensive work in Argentina.
So why has Bolivia fallen by the wayside?
Magnesium malaise
For starters, the Bolivian salars are higher in altitude and wetter than those in Chile, meaning that the extraction process takes longer and costs more as the cooler temperatures reduce the evaporation rate and seasonal rainfall exacerbates this.
But Cosmos Exploration (ASX:C1X) executive chairman Jeremy Robinson told Stockhead the foremost reason was the relatively high magnesium content of the Bolivian brines.
As an example, the giant Salar de Uyuni – the largest lithium-bearing salt lake in the world – has an extremely high magnesium to lithium ratio of 19:1, above the 6:1 found at Chile's Salar de Atacama and 1:1 at Argentina's Hombre Muerto salar.
This magnesium has to be removed by adding slaked lime before the concentrated brine can be processed, a requirement that adds further costs to the process.
A common industry axiom says that the ratio needs to be below 10:1 to remain economical.
'That's why we need direct lithium extraction technology,' Robinson added.
Counting on DLE
Adsorption-type Direct Lithium Extraction (A-DLE) uses physical processes, optimised by heat and salinity gradients, to selectively extract lithium from brines while minimising water loss and environmental impact.
DLE extraction does require significant upfront investment and energy input but can achieve lithium extraction in just hours or days – rather than weeks or months with higher recoveries.
Cosmos itself is counting on A-DLE.
In December last year, the company signed an exclusive option agreement to acquire EAU Lithium, a private lithium development company, part owned by Vulcan Energy Resources (ASX:VUL), with a technology-testing agreement with Bolivian state-owned company Yacimientos de Litio Bolivianos (YLB).
This agreement, which also leverages EAU's technology partnership with Vulcan, enables EAU to test lithium brines from Salar de Coipasa, Salar de Empexa and Salar de Pastos Grandes salars – some of the largest salars in the country.
While recognised for their high lithium, high magnesium brine chemistry, these salars remain largely undeveloped and have seen less work than the more widely studied Salar de Uyuni.
Despite this, they offer compelling opportunities for the evaluation of advanced lithium extraction technologies with the region benefitting from existing road infrastructure and access to export routes via nearby Chilean ports.
'We've purchased an option to acquire EAU lithium and EAU Lithium has a test work agreement whereby it has to prove that the Vulcan A-DLE technology can recover the lithium from the lithium brine in Bolivia,' Robinson said.
VULSORB is Vulcan's proprietary alumina-based sorbent that has demonstrated higher performance and lower water consumption for lithium extraction compared to commercially available sorbents.
Cosmos had previously flagged that the entire process could take six to nine months.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
a day ago
- News.com.au
Who made the gains in May? Goldies hog top spot on the podium
The top 3 commodities for July include gold, copper and lithium DTR takes top spot for biggest monthly stock gain Resource Mining Corp nabs honourable mention With gold prices near record highs and in the vicinity of US$3300/oz, gold explorers and miners continue to crowd the leaderboards for the ASX's top resource stock gainers of May. The biggest winner for the month was goldie Dateline Resources (ASX:DTR), up a frankly quite ridiculous 978%. Worth less than $10 million only a month or two ago, the owner of the 1.1Mo Colosseum gold project in California. More on that below. It was followed by Resource Mining Corporation (ASX:RMI) and Locksley Resources (ASX:LKY) up 460% and 321% respectively. The Donald likes Dateline Much of Dateline's growth can be put down to a shoutout from US President Donald Trump on his Truth Social platform that got investors excited. DTR owns the 1.1Moz Colosseum gold project, where Trump highlighted the company's rare earths potential, sitting just a few kms from the Mountain Pass mine. The company also released an updated scoping study last week based around a gold price estimate lifted from US$2200/oz in a study compiled in October last year to US$2900/oz. With annual gold production unchanged at 71,000ozpa, that would lift net revenue before tax by 208%from US$398m to US$827m and ups the project's IRR from 31% to 61%. Before tax discounted cashflow would rise 234% to US$550m. Also this week DTR reported possible hidden extensions of gold breccia pipes at the project, pointing to the potential for hidden gold zones beyond historical workings. There's a nice upside emerging, particularly since all 641 historic drill holes targeted only the breccia pipes with surface exposure and large areas of the property remain effectively untested. Most popular commodities in May: Here are the top 50 ASX resources stocks for the month of May Scroll or swipe to reveal table. Click headings to sort. Code Description Last %Mth MktCap XTC XTC Lithium Limited 0.2 19900% $17,528,272 DTR Dateline Resources 0.097 978% $262,956,021 RMI Resource Mining Corp 0.028 460% $21,299,147 LKY Locksley Resources 0.08 321% $9,680,000 SMM Somerset Minerals 0.024 140% $9,722,874 PUA Peak Minerals Ltd 0.021 133% $56,146,426 OCN Oceana lithium 0.059 119% $7,837,294 RML Resolution Minerals 0.017 113% $7,361,016 PEK Peak Rare Earths Ltd 0.255 108% $89,789,736 HRE Heavy Rare Earths 0.041 105% $8,529,389 FRS Forrestania Resources 0.079 103% $25,772,734 HIO Hawsons Iron Ltd 0.026 100% $25,412,534 LLI Loyal Lithium Ltd 0.13 97% $13,095,298 NWC New World Resources 0.047 96% $168,210,882 TMG Trigg Minerals Ltd 0.081 88% $75,757,331 MM1 Midas Minerals 0.28 87% $38,837,399 VTM Victory Metals Ltd 0.88 85% $101,837,524 SPD Southern Palladium 0.415 84% $35,470,500 BTM Breakthrough Minerals 0.125 84% $5,264,545 VRL Verity Resources 0.029 81% $7,742,283 YAR Yari Minerals Ltd 0.009 80% $4,992,403 MEG Megado Minerals Ltd 0.014 75% $5,875,566 CDT Castle Minerals 0.1 72% $11,020,909 CDR Codrus Minerals Ltd 0.034 70% $6,822,235 TAS Tasman Resources Ltd 0.025 67% $3,314,567 BMR Ballymore Resources 0.165 65% $27,393,241 FML Focus Minerals Ltd 0.385 60% $101,728,319 ANX Anax Metals Ltd 0.008 60% $7,062,461 JAL Jameson Resources 0.04 60% $23,207,866 MGU Magnum Mining & Exp 0.008 60% $7,851,556 WTM Waratah Minerals Ltd 0.32 60% $74,723,925 STK Strickland Metals 0.145 56% $316,730,372 FG1 Flynn Gold 0.031 55% $11,348,178 VRX VRX Silica Ltd 0.062 55% $47,080,107 MTM MTM Critical Metals 0.37 54% $151,363,716 BGD Barton Gold Holdings 0.735 52% $158,720,391 AYM Australia United Min 0.003 50% $5,527,732 CMD Cassius Mining Ltd 0.024 50% $16,937,640 CTN Catalina Resources 0.003 50% $8,491,067 OB1 Orbminco Limited 0.0015 50% $4,795,136 RLL Rapid Lithium Ltd 0.003 50% $3,734,834 SER Strategic Energy 0.009 50% $6,039,300 SNX Sierra Nevada Gold 0.027 50% $4,281,137 BKT Black Rock Mining 0.03 50% $44,083,197 NNL Nordicresourcesltd 0.085 49% $14,457,374 TNC True North Copper 0.325 48% $39,010,095 WCN White Cliff Min Ltd 0.028 47% $60,408,040 NMT Neometals Ltd 0.093 45% $69,248,258 CLE Cyclone Metals 0.056 44% $72,396,276 DES Desoto Resources 0.15 43% $27,002,546 Small Cap Standouts Resource Mining Corporation (ASX:RMI) Exploration at the company's Mpanda copper-gold project has been the catalyst for its gains in May, with the company reporting impressive gold and copper grades from rock samples up to 36.7g/t gold and 11.89g/t copper from Kabungu and 13.58% copper and 3.24g/t gold from Stalike. Ten prospects make up the Mpanda Project and RMI believes results to date provide an indicator of the presence of an extensive mineralised system. There have been 16 rock chip samples from small-scale mines gathered within RMC's tenements with five samples exceeding 11g/t gold and two exceeding 10% copper from the Kabungu prospect. Last month the company also reported strong support for a $2m placement at 2.1c per share to accelerate drilling. Plus, looking forward, RMI is also assessing near-term production opportunities at Stalike and Kabungu by utilising nearby existing third-party processing infrastructure. Locksley Resources (ASX:LKY) Locksley saw some great gains in May, following a $1.47m placement at 4c per share to fund an upcoming exploration campaign, including drilling, at the Mojave antimony and rare earths project in California. While waiting for Bureau of Land Management approvals to be granted, the company's exploration team will conduct follow-up mapping and rock chip sampling across high-priority antimony, REE, polymetallic and copper targets. Drilling is expected to begin in the September quarter, and will focus on the El Campo prospect where six holes will be drilled to test TREO of up to 12.1% and the Desert Antimony Mine, with three holes testing high-grade antimony mineralisation of up to 46%. Notably, Mojave is immediately adjacent to MP Materials' high-grade Mountain Pass mine and processing facility, which is the only active REE processor in the US and produces ~15% of global REE supply. REEs and antimony are designated as critical minerals by the US government with the former – particularly magnet REEs – used to manufacture permanent rare earth magnets that are used in electric vehicle motors and wind turbines. Rock chips at Mojave have returned grades of up to 17% while sampling returned high-grade results of between 3.74% and 9.49% total rare earth oxides within a six-metre wide mineralised zone at the El Campo prospect. Somerset Minerals (ASX:SMM) Up 140% for May was Somerset Metals, who completed its acquisition of the Coppermine copper-silver project in Canada, which is adjacent to White Cliff Minerals (ASX:WCN) Rae project. Drilling at the Coronation prospect also kicked off this month, targeting large coincident geophysical and geochemical anomalies only 7km from WCN's Danvers prospect - which recently reported 58m at 3.08% copper from 52m. So far, widespread copper mineralisation has been identified, with assays expected in the next 2-4 weeks. Somerset is particularly confident of strong results since its extensive land package hosts the strike extensions to White Cliff's primary Vision, Stark, Thor, and Rocket districts, and most of the ground surrounding the Danvers prospect. Peak Minerals (ASX:PUA) PUA saw a gain of 133% for the month, thanks in part to intersecting heavy minerals (HM) across a strike length of 28km at the Minta rutile project in Cameroon. The company said the results of up to 3.1m at 8.4% HM, 6.8m at 2.8%, 3.5m at 5.0% and 6.3m at 2.4% from an additional 29 holes of reconnaissance exploration auger drilling confirm the project's significant scale. Not to mention, the initial intercepts are adjacent to the discovery hole of 4m at 1.57% HM which included 4m at 1.05% rutile. 'This second batch of results from the drilling program at the Minta Rutile Project in Cameroon continues to confirm the extensive scale and consistency of heavy mineral mineralisation across the project area,' Peak Minerals CEO Casper Adson said. 'With the Minta Project spanning over 7000km2 and this initial drilling phase covering approximately 50% of the total project area, these findings underscore the substantial potential of this emerging rutile province. 'These results reinforce the scale of the Minta Project, underscoring its potential as a significant new source of rutile and potentially a globally significant rutile province.' We wonder whether there is a case of mistaken identity here. Peak's big lift came around the same time African rare earths developer Peak Rare Earths (ASX:PEK) was taken out at a massive premium for $150.5m by Shenghe Resources. Oceana Lithium (ASX:OCN) Up 119% for May, OCN holds the Napperby project in NT which covers around ~650km2 within within the Northern Arunta pegmatite province. It also has the Solonópole project in Brazil where an exploration licence extension is pending for the promising Nera prospect. This month the company announced commitments to raise $667,000 towards progressing the projects, and to identify and assess new complimentary project opportunities. 'Securing additional funds ensures Oceana is well placed to progress the company's existing assets in Brazil and Australia, as well as continue to assess new project opportunities,' non-executive chairman Martin Helean said. 'We look forward to providing updates on exploration activities across our portfolio in the near term. 'We thank our existing shareholders for their ongoing support, and are pleased to welcome new shareholders to the company.'
West Australian
6 days ago
- West Australian
The West is recycling rare earths to escape China's grip — but it's not enough
As China tightens its grip on the global supply of key minerals, the West is working to reduce its dependence on Chinese rare earths. This includes finding alternative sources of rare earth minerals, developing technologies to reduce reliance, and recovering existing stockpiles through recycling products that are reaching the end of their shelf life. 'You cannot build a modern car without rare earths,' said consulting firm AlixPartners, noting how Chinese companies have come to dominate the supply chain for the minerals. In September 2024, the US Department of Defense invested $US4.2 million ($6.5m) in Rare Earth Salts, a startup that aims to extract the oxides from domestic recycled products such as fluorescent light bulbs. Japan's Toyota has also been investing in technologies to reduce the use of rare earth elements. According to the US Geological Survey, China controlled 69 per cent of rare earth mine production in 2024, and nearly half of the world's reserves. Analysts from AlixPartners estimate that a typical single-motor battery electric vehicle includes around 550 grams (1.21 pounds) of components containing rare earths, unlike gasoline-powered cars, which only use 140 grams of rare earths, or about 5 ounces. More than half of the new passenger cars sold in China are battery-only and hybrid-powered cars, unlike the U.S., where they are still mostly gasoline-powered. 'With slowing EV uptake (in the U.S.) and mandates to convert from ICE to EV formats receding into the future, the imperative for replacing Chinese-sourced materials in EVs is declining,' said Christopher Ecclestone, principal and mining strategist at Hallgarten & Company. 'Pretty soon, the first generation of EVs will be up for recycling themselves, creating a pool of ex-China material that will be under the control of the West,' he said. Only 7.5 per cent of new US vehicle sales in the first quarter were electric, a modest increase from a year ago, according to Cox Automotive. It pointed out that around two-thirds of EVs sold in the U.S. last year were assembled locally, but manufacturers still rely on imports for the parts. 'The current, full-blown trade war with China, the world's leading supplier of EV battery materials, will distort the market even more.' Of the 1.7 kilograms (3.74 pounds) of components containing rare earths found in a typical single-motor battery electric car, 550 grams (1.2 pounds) are rare earths. About the same amount, 510 grams, is used in hybrid-powered vehicles using lithium-ion batteries. In early April, China announced export controls on seven rare earths. Those restrictions included terbium, 9 grams of which is typically used in a single-motor EV, AlixPartners data showed. None of the six other targeted rare earths are significantly used in cars, according to the data. But April's list is not the only one. A separate Chinese list of metal controls that took effect in December restricts exports of cerium, 50 grams of which AlixPartners said is used on average in a single-motor EV. The controls mean that Chinese companies handling the minerals must get government approval to sell them overseas. Caixin, a Chinese business news outlet, reported on May 15, just days after a US-China trade truce, that three leading Chinese rare earth magnet companies have received export licenses from the commerce ministry to ship to North America and Europe. What's concerning for international business is that there are barely any alternatives to China for obtaining the rare earths. Mines can take years to get operating approval, while processing plants also take time and expertise to establish. 'Today, China controls over 90 per cent of the global refined supply for the four magnet rare earth elements (Nd, Pr, Dy, Tb), which are used to make permanent magnets for EV motors,' the International Energy Agency said in a statement. That refers to neodymium, praseodymium, dysprosium and terbium. For the less commonly used nickel metal hydride batteries in hybrid cars, the amount of rare earths goes up to 4.45 kilograms, or nearly 10 pounds, according to AlixPartners. That's largely because that kind of battery uses 3.5 kilograms of lanthanum. 'I estimate that around 70 per cent of the over 200 kilograms of minerals in an EV goes through China, but it varies by vehicle and manufacturer. It's hard to put a definitive figure on it,' said Henry Sanderson, associate fellow at The Royal United Services Institute for Defence and Security. However, there are limits to recycling, which remains challenging, energy-intensive and time-consuming. And even if adoption of EVs in the U.S. slows, the minerals are used in far larger quantities in defence. For example, the F-35 fighter jet contains over 900 pounds of rare earths, according to the Center for Strategic and International Studies, based in Washington, DC. China's rare earths restrictions also go beyond the closely watched list released on April 4. In the last two years, China has increased its control over a broader category of metals known as critical minerals. In the summer of 2023, China said it would restrict exports of gallium and germanium, both used in chipmaking. About a year later, it announced restrictions on antimony, used to strengthen other metals and a significant component in bullets, nuclear weapons production and lead-acid batteries. The State Council, the country's top executive body, in October released an entire policy for strengthening controls of exports, including minerals, that might have dual-use properties, or be used for military and civilian purposes. One restriction that caught many in the industry by surprise was on tungsten, a US-designated critical mineral but not a rare earth. The extremely hard metal is used in weapons, cutting tools, semiconductors and car batteries. China produced about 80 per cent of the global tungsten supply in 2024, and the U.S. imports 27% of tungsten from China, data from the U.S. Geological Survey showed. About 2 kilograms of tungsten is typically used in each electric car battery, said Michael Dornhofer, founder of metals consulting firm Independent Supply Business Partner. He pointed out that this tungsten is not able to return to the recycling chain for at least seven years, and its low levels of use might not even make it reusable. '50 per cent of the world's tungsten is consumed by China, so they have business as usual,' Lewis Black, CEO of tungsten mining company Almonty, said in an interview last month. 'It's the other 40 per cent that's produced (in China) that comes into the West that doesn't exist.' He said when the company's forthcoming tungsten mine in South Korea reopens this year, it would mean there would be enough non-China supply of the metal to satisfy US, Europe and South Korean needs for defence. But for autos, medical and aerospace, 'we just don't have enough.'
News.com.au
7 days ago
- News.com.au
Bolivian lithium brines emerging from the shadows cast by Chile and Argentina
Bolivia's salars are estimated to host about 22% of the world's known lithium resources Lithium brines in the country saddled with high levels of magnesium that make it expensive to process Cosmos Exploration is counting on A-DLE technology developed by Vulcan Energy to overcome this hurdle The famed Lithium Triangle encompasses parts of Chile, Argentina and Bolivia and supplies the majority of the world's lithium and hosts the lion's share of identified reserves. This lithium is contained within salt lakes (salars) that host mineral-rich brines that have to be pumped up to surface and traditionally left in evaporation ponds to be concentrated with reagents before being processed. These are globally significant due to their exceptional lithium enrichment that is due to a combination of geological, climatic, basin morphology and hydrological factors that create ideal conditions for lithium concentration. However, while Bolivia's salars are estimated by the US Geological Survey to host an estimated 23Mt of contained lithium, about 22% of the world's known lithium resources, most of the attention has been monopolised by Chile and Argentina. Chile is the second largest producer of lithium after Australia, while companies have snapped up, grown and carried out extensive work in Argentina. So why has Bolivia fallen by the wayside? Magnesium malaise For starters, the Bolivian salars are higher in altitude and wetter than those in Chile, meaning that the extraction process takes longer and costs more as the cooler temperatures reduce the evaporation rate and seasonal rainfall exacerbates this. But Cosmos Exploration (ASX:C1X) executive chairman Jeremy Robinson told Stockhead the foremost reason was the relatively high magnesium content of the Bolivian brines. As an example, the giant Salar de Uyuni – the largest lithium-bearing salt lake in the world – has an extremely high magnesium to lithium ratio of 19:1, above the 6:1 found at Chile's Salar de Atacama and 1:1 at Argentina's Hombre Muerto salar. This magnesium has to be removed by adding slaked lime before the concentrated brine can be processed, a requirement that adds further costs to the process. A common industry axiom says that the ratio needs to be below 10:1 to remain economical. 'That's why we need direct lithium extraction technology,' Robinson added. Counting on DLE Adsorption-type Direct Lithium Extraction (A-DLE) uses physical processes, optimised by heat and salinity gradients, to selectively extract lithium from brines while minimising water loss and environmental impact. DLE extraction does require significant upfront investment and energy input but can achieve lithium extraction in just hours or days – rather than weeks or months with higher recoveries. Cosmos itself is counting on A-DLE. In December last year, the company signed an exclusive option agreement to acquire EAU Lithium, a private lithium development company, part owned by Vulcan Energy Resources (ASX:VUL), with a technology-testing agreement with Bolivian state-owned company Yacimientos de Litio Bolivianos (YLB). This agreement, which also leverages EAU's technology partnership with Vulcan, enables EAU to test lithium brines from Salar de Coipasa, Salar de Empexa and Salar de Pastos Grandes salars – some of the largest salars in the country. While recognised for their high lithium, high magnesium brine chemistry, these salars remain largely undeveloped and have seen less work than the more widely studied Salar de Uyuni. Despite this, they offer compelling opportunities for the evaluation of advanced lithium extraction technologies with the region benefitting from existing road infrastructure and access to export routes via nearby Chilean ports. 'We've purchased an option to acquire EAU lithium and EAU Lithium has a test work agreement whereby it has to prove that the Vulcan A-DLE technology can recover the lithium from the lithium brine in Bolivia,' Robinson said. VULSORB is Vulcan's proprietary alumina-based sorbent that has demonstrated higher performance and lower water consumption for lithium extraction compared to commercially available sorbents. Cosmos had previously flagged that the entire process could take six to nine months.
