- Lake Resources marked a significant milestone with its technology partner, Lilac Solutions in the development of high-purity lithium from Lake’s 100% owned Kachi Project.
- Lake has produced the first samples of lithium chloride from direct extraction pilot plant module of Lilac at California.
- Lake is expecting to produce one lithium chloride sample on weekly basis, to be then transformed into lithium carbonate and subsequently forwarding the same to potential purchasers.
- Lake seems to be well placed to gain advantage from the recent developments in the EV space and global clean energy transition.
Lithium exploration and development company, Lake Resources NL (ASX:LKE) has been engaged in the development of its flagship Kachi Lithium Brine Project, three other lithium brine projects and a hard rock project in Argentina -all fully owned projects.
Lake, along with its technology partner Lilac Solutions, has reached another milestone towards the delivery of high purity, responsibly sourced lithium. In this latest achievement, Lake has successfully produced initial samples of lithium chloride from direct lithium extraction pilot plant module of Lilac that is dedicated to Kachi Lithium Brine Project.
High lithium concentrations have been highlighted by the samples, in line with the previously demonstrated results through lab scale.
Current Project Focus
Presently, the processing of 20,000 litres of brines is underway at a newly upgraded industrial facility of Lilac in California.
Lake is currently targeting to produce one lithium chloride sample every week, which is expected to be later converted into lithium carbonate and subsequently be dispatched to prospective off-takers.
Lake plans to get these samples analysed by external laboratories over the next week.
Research Indicates High Project Potential
Recently published research and the Pre-Feasibility Study for Kachi project have indicated disruptive, cost-competitive, scalable and sustainable Lilac’s advanced technology to be utilised at Kachi lithium brines, and its ability to produce a battery-grade high-quality product sought by global battery and cathode manufacturers.
Importantly, there has been a considerable acceleration in the momentum towards the electrification of global transport, as seen by new lithium-ion battery megafactories. This is supported by the 1 billion British pounds worth of commitment by the UK government for financing towards building a lithium-ion battery megafactory.
According to Benchmark Mineral Intelligence analysis, currently 142 battery megafactories are being built worldwide, with the market size seen to be increased fourfold over last five years on the back of the EV revolution.
Factors Favouring LKE’s Market Position
Lake is confident of its strong position to benefit from the buoyant market opportunity arising out of global clean energy transition, coupled with following project attributes:
- High Purity Lithium Carbonate Samples indicating very low impurities produced using ion-exchange extraction process, capable of achieving premium pricing in the market.
- Accelerated Engagement with Off-takers to initiate qualification testing and further engage to assist in financing
- Significant Results from PFS, including a large, long-life low-cost potential operation with aggressive costs of production at the lower end of the cost curve
- Sustainable and Scalable Lithium Production in Future expected with demand from the larger electric vehicle makers and a growing number of battery/cathode makers.
In addition to these factors, LKE believes that the demand forecasts for lithium continue to be revised upwards, while the supply response is falling further behind, especially the shortage of battery-grade product.
Lake Resources is of the view that the lithium industry is in a dire need for high-quality supply, which is currently not being produced in adequate quantities to satisfy upcoming demand scenario. Lake seeks to give a clear demonstration of its ability to produce large volumes of high purity lithium carbonate samples and deliver the same to industry buyers and potential off-takers.
LKE stock traded at $0.038 by the close of market trading on 3 July 2020, with a market capitalisation of $ 26.86 million.