- The increased need for producing more lithium has raised concerns over the sustainable production of lithium.
- LKE utilised sustainable, direct extraction methods for lithium extraction and producing a high-purity material.
- The direct extraction method has demonstrated the production of battery-quality lithium carbonate with minimal environmental footprints.
The idea of sustainability has taken centre stage in the lithium sector with increased activity surrounding lithium extraction. Lithium is an essential raw material in manufacturing lithium-ion batteries, which are vital in vehicle electrification.
Lithium-ion batteries are viewed as a breakthrough in powering modern-day transportation and are an integral part of life in the 21st century. The restricted supply for high-quality lithium in light of the global EV revolution is also augmenting the growing need for lithium.
However, there are questions concerning the environmental cost of powering the modern world through lithium. Amongst the many critical areas, a key area of focus continues to be the consumption of water in the lithium extraction process.
Argentina holds one of the major lithium deposits across the globe, with the lithium triangle holding around 70% of the global lithium reserves.
Lithium explorers and producers are looking for new and sustainable ways of producing lithium in a way that aligns with various sustainability standards.
Also, technology is playing a pivotal role in sustainable lithium production, and lithium producers are engaging with these technology service providers for sustainably produced lithium. The regulations and legislation promoting the use of sustainable lithium production have also compelled EV makers to increase focus on sustainable, high-purity lithium.
LKE’s stance in sustainable production of lithium
Clean lithium producer Lake Resources N.L. (ASX:LKE) has noted the rising demand for high-purity lithium product and the need for a sustainable Lithium product. Moreover, there are possible financial consequences for EV makers in Europe related to minimising carbon footprints and meeting EU import regulations.
LKE’s flagship Kachi Lithium Project suggests a substantial upside with 99.97%-purity lithium carbonate produced from the brines collected from the project in October last year.
Location of Lake’s Kachi Project (Source: LKE Announcement 19/05/2021)
The Company engages in the production of sustainable, high-purity lithium by using direct extraction technology, which helps in addressing the issue of sustainable, responsibly sourced materials for electric vehicles.
The clean technology employed by LKE has demonstrated a far smaller environmental footprint as compared to traditional ways. The clean technology returns all water (brine) virtually to its source with a low-CO2 footprint.
Direct extraction Process (Source: LKE Presentation 01/06/2021)
According to financial advisers, LKE’s Kachi project is a technically and commercially compelling opportunity and is likely to contribute to the UN Sustainable Development Goals. Moreover, the project also indicates a possibility for expanding the production, subject to a proposed resource upgrade and finalisation of additional studies.
All in all, lithium extraction and usage should be through sustainable processes that ensure control over all kinds of pollutions. Through its commitment towards the sustainable, direct extraction of lithium, LKE seems suitably poised to contribute to the attainment of sustainability goals while producing a high-quality, battery-grade product.
The LKE stock closed at AU$0.375, up by 7.142%, on 22 June 2021.