ERO Mining Ltd (ASX:ERO) is shifting its commodity focus from gold and uranium to lithium as it acquires an unlisted lithium and uranium explorer, South East Energy Ltd.
Shares in ERO nearly doubled after the announcement was made on Tuesday and were trading at AUD$0.053 at 3:30pm, Wednesday, down by 10% for the day.
The offer is subject to the approval of the ERO shareholders.
ERO Mining will acquire a package of prospective exploration acreage at Lake Frome, Lake Torrens and Padthaway project in the south east of South Australia. The move shows ERO's focus in exploration for lithium within continental brines and sediments of Lake Frome and Lake Torrens.
Lithium is used in the production of glass, ceramics, aluminium and batteries for electrical vehicles, mobile phones, laptops and other electronic devices. The demand for lithium has grown phenomenally in the last decade and it is expected to continue rising.
So much so that even Bolivia is planning to industrialize the world's largest known reserve of lithium with strategic alliances. As per the Bolivian Mining Minister Jose Pimentel, the country plans to start production of lithium carbonate and potassium chloride for export this month at its pilot plant.