- The share price of Lake Resources NL (ASX:LKE) has increased by a whopping 188% over the last year.
- LKE’s commitment towards delivering a high-purity product has propelled its growth, and the Company is confident of delivering the same.
- In the time to come, LKE has a significant opportunity as the industry is struggling to meet the demand for high-quality lithium.
- LKE is nearing its milestone of bringing the Kachi project towards production.
The share price of clean lithium producer, Lake Resources NL (ASX:LKE), has rallied approximately 188% till 11 December 2020. This dramatic uptick in the share price of LKE has helped shareholders reap significant value for their investment in a considerably shorter period of time.
LKE Benefitting from Shift Towards Renewable Energy Future
The Company has made remarkable progress over the year, and it is close to achieving the milestone of producing lithium-ion batteries at its Kachi Lithium Brine Project.
Interesting Read: Lake Resources in a sounding position amid focus on e-vehicle production
Over the years, the problem of climate crisis has become enormous, and the world is shifting rapidly towards a renewable energy future. Moreover, the world has witnessed forced adoption of technologies during the ongoing COVID-19 pandemic. Moving into the future, this is expected to be a new normal.
Lithium producers like LKE are hugely favoured as the world is moving towards the electrification of transport and mobility. Government legislations prohibiting the sale of internal combustion engines and diesel vehicles have further fuelled the prospects for electrification of transport and mobility.
Legislative and Financial Support from Governments
Governments are not only playing their part in passing legislations, but are also assisting through committing the rollout of supportive infrastructure and subsidies related to the quick adaption of electric mobility.
LKE forms a key element of the solution to the alarming issue that our planet is facing in these testing times. LKE is confident of its positioning to demonstrate the potential to deliver a scalable and consistent high-purity product to battery makers.
LKE remains confident that the coming year shall prove to be a transformational time for the Company as it aims to deliver the initial product to the market in late 2023/early 2024.
Following the Tesla battery day, EV market leaders like Tesla have helped to boost the demand forecasts for lithium by almost 200%. Events like these present significant opportunities for LKE as global demand for EVs grows exponentially in line with the growing need for more batteries to be produced.
Significantly, the industry is witnessing limited supply along with problems of maintaining product quality on the projects which have amplified production. Therefore, there remains considerable opportunity for LKE to deliver a scalable, highly efficient and cost-competitive solution and meet the rising demand.
LKE share price closed at $0.072 with a market capitalisation of $60.46 million on 11 December 2020.