The remote Cooper Basin region. Image: Google Maps
Australasia
Geothermal

The hidden lithium treasure of South Australia

For two centuries, South Australia's Cooper Basin has been synonymous with exploration. First hydrocarbons, now a world-class lithium resource

Despite receiving just 165 mm of rain annu­ally, Coopers Creek flows year-round, an anomaly that has lured generations of explorers in pre-history to early Euro­pean settlers. Exploration by geologist Reg Sprigg, founder of Santos and Beach Energy, led to drill­ing the Moomba-1 well in 1965, unlocking Aus­tralia’s largest onshore gas field in the Cooper Basin. It also heralded the discov­ery of the Big Lake Suite granite (BLS granite) base­ment, with its unrealised lithium-brine potential, which is today attracting global attention.

Hydro Lit’s Cooper Lithium Project isn’t just another resource play, it’s a geological jackpot. Fluids trapped within the gran­ite have very high lithium concentrations and mini­mal impurities, position­ing Australia to become a major force in the global battery supply chain as the world faces a looming lith­ium shortfall.

Map redrawn after Geoscience Australia & OSM Contributors (2024) and Department of Energy and Mining, Government of SA.

From hot rocks to lithium riches

In 2003, a geothermal drill­ing campaign by Geody­namics targeting the BLS granites made a surprising discovery. Instead of hot dry rocks, they struck wet fractured rock with brines at 200° C, flowing up to 40 l/sec. Over a decade, wa­ter samples from five deep wells revealed lithium levels up to 320 mg/l, with min­imal impurities. The geolo­gy tells a remarkable story: 300 million years ago, gla­cial waters flooded exposed granite. Subsequent burial and heating by radioactive decay caused leaching of lithium from hydrother­mally altered minerals into a vast, fractured reservoir now forming the lithium resource for Hydro Lit’s Cooper Lithium project.

A resource of global significance

A Mineral Resource Area (MRE) covering only 700 km² of Hydro Lit’s 10,000 km² mineral leases holds a JORC-inferred 25.2 million tonnes of lithium carbonate equivalent. Re­covering only 10 % of those fluids and utilising Direct Lithium Extraction (DLE) could supply batteries for 40 million electric vehicles.

The hot brines also offer a rare dual benefit: Clean geothermal energy for emissions-free lithium extraction. Backed by gen­erous R&D tax and crit­ical minerals production incentives and full control of the lithium-rich fairway, Hydro Lit holds a strategic first-mover advantage, even as major players like Exxon­Mobil eye the region too.

The future beckons

Hydro Lit is deploying advanced geophysics to pinpoint high-flow fault zones for targeted ex­traction. A 12-month pilot project is set to prove lithium recovery and geothermal technolo­gies, with results expected by late 2026. The goal: Deliver low-cost, green lithium just as the world confronts a looming sup­ply crunch.

Explorers Burke and Wills missed their rescue arriving at the Dig Tree a day too late. While Ge­odynamics geothermal project missed its com­mercial mark, it left be­hind a rich trove of data. Unlike Burke and Wills, whose poor timing result­ed in their deaths along Coopers Creek, Hydro Lits timing is perfect to lead Australia’s next crit­ical mineral revolution. And this time, they know exactly where to dig.

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