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Is Lake Resources (ASX:LKE) in prime position to become a High-Purity Lithium supplier?

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Summary

  • High-purity lithium producers are placed to benefit from the ongoing awareness towards the electrification of transport.
  • Lake Resources aims to emerge a sustainable and cost-effective producer of high-purity lithium, which can be used in battery manufacturing.
  • Lake Resources has partnered with several players to assist in the process to produce high-purity lithium.
  • LKE remains financially sound to fund the ongoing DFS as well as other planned activities.

The growing awareness for adopting environmentally friendly ways of living can turn the corner for contemporary lithium producers as one of the key solutions to this revolution is lithium-ion batteries.

Therefore, there lies a significant opportunity for lithium producers. Lithium is witnessing rapid growth in demand in response to escalating electric vehicle usage and energy storage. However, this may not be as simple as it sounds, as manufacturing of lithium-ion batteries requires high-purity lithium, which every lithium-developing company may not be offering.

GOOD READ: Lake Resources (ASX:LKE) full steam ahead at Kachi Project with DFS in progress  

LKE’s Partnerships to Support Lithium Production

Opportunistically, Lake Resources N.L. (ASX:LKE) is engaged in the development of sustainable, high-purity lithium for off-takers and benefit from the disruption in the battery materials supply industry.

LKE has made notable exploration progress across its flagship Kachi Lithium Brine Project and has partnered with various industry players, which are helping at various stages while producing sustainable, high-purity lithium. These partners include Lilac Solutions Inc, Hazen Research Inc, as well as Novonix Battery Technology Solutions.

INTERESTING READ: Lake Resources (ASX:LKE) full steam ahead at Kachi Project with DFS in progress 

LKE has received highly encouraging feedback from its partners, which optimises the Company’s view to delivering high-purity lithium carbonate samples. Further, LKE has transported lithium carbonate samples for testing at Novonix. The data from this test shall help the potential off-takers and users of LKE’s product to compare its performance with similar cell chemistries in a straightforward and appropriate manner.

DID YOU READ: Lake Resources’ Kachi Lithium project makes major headways in December quarter  

DFS Commenced at Kachi Project

Notably, LKE has officially commenced a DFS at its Kachi Project, which marks an important milestone in the advancement of the project. The DFS shall help to develop the project as a sustainable and commercially effective developer of high-quality lithium product for the swiftly expanding battery market.

RELATED: Lake Resources’ Technology Partner in California Picks Up Steam After Restrictions are Lifted

Appropriately Funded After Capital Raising

On the funding front, LKE had raised A$20.6 million by the way of placement to institutional investors from North America, Europe, as well as Australia. The Company believes that this is a transformational and defining moment for its development as LKE now has numerous investors that follow the swiftly expanding clean-tech battery materials segment.

LKE believes that this funding shall assist in delivering the Kachi project through the DFS amid the swift expansion of the clean energy sector.

Moreover, the Company now stands in the strongest financial position ever as it holds more than A$25 million subsequent to the placement and looks forward to adding a further A$6 million by July as present options convert.

RELATED UPDATE: ASX-listed LKE cranks up Kachi Lithium Brine Project with Shallow Drill Testing

Bottomline

Other than the Kachi project, LKE holds three other lithium brine projects within the Lithium Triangle in Argentina. LKE seems suitably positioned to emerge a high-purity lithium supplier. Presently, LKE looks forward to receiving initial results from the testing at Novonix in the March quarter of 2021.

INTERESTING READ: Lake Resources in a sounding position amid focus on e-vehicle production

LKE share price closed at A$0.385, with a A$395.48 million market capitalisation on 24 February 2021.

 


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