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Cotorsion pairs and a $K$-theory Localization Theorem

We show that a complete hereditary cotorsion pair $(\C,\C^\bot)$ in an exact category $\E$, together with a subcategory $\Z\subseteq\E$ containing $\C^\bot$, determines a Waldhausen category structure on the exact category $\C$, in which $\Z$ is the class of acyclic objects. This allows us to prove a new version of Quillen's Localization Theorem, relating the $K$-theory of exact categories $\A\subseteq\B$ to that of a cofiber. The novel idea in our approach is that, instead of looking for an exact quotient category that serves as the cofiber, we produce a Waldhausen category, constructed through a cotorsion pair. Notably, we do not require $\A$ to be a Serre subcategory, which produces new examples. Due to the algebraic nature of our Waldhausen categories, we are able to recover a version of Quillen's Resolution Theorem, now in a more homotopical setting that allows for weak equivalences.