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Lake Resources (ASX:LKE) - Managing Director, Stephen Promnitz
Managing Director, Stephen Promnitz
Source: Investor Stream
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  • Emerging lithium producer Lake Resources (LKE) is spruiking the “significant and sustainable competitive advantages” of its Kachi brine project in Argentina’s Lithium Triangle
  • Lake’s 99.9 per cent pure lithium carbonate is battery-grade and produced by a sustainable process with relatively low environmental impact
  • For electric vehicle (EV) makers seeking to shore up their sustainability credentials, the Kachi product would be an ideal fit
  • Off the back of the very positive Kachi pre-feasibility study (PFS), discussions with potential financiers and offtakers have now ramped up
  • If the findings of Lake’s PFS and Orior’s report stand up, Lake could be very well-positioned to be at the vanguard of the new EV wave
  • Lake Resources is up 8.6 per cent to 3.8 cents per share

Emerging lithium producer Lake Resources (LKE) is spruiking the “significant and sustainable competitive advantages” of its Kachi brine project in Argentina’s Lithium Triangle.

A sustainable future

An Orior Capital report commissioned by Lake has highlighted the potential for supply shortages of battery-grade lithium carbonate in the mid-2020s as the EV market begins to take off.

Kachi’s estimated entry to market would be well-timed to take advantage of the global production shortfall.

As electric vehicle (EV) makers will also be seeking high-purity and sustainably sourced materials for their components, the Kachi project so far seems to tick all the boxes too.

Lake’s 99.9 per cent pure lithium carbonate is battery-grade and produced by a sustainable process with relatively low environmental impact.

For EV makers seeking the lowest carbon footprints possible to underpin their sustainability credentials, the Kachi product would be an ideal fit.

Funding, finance, future

Off the back of the very positive Kachi pre-feasibility study (PFS), discussions with potential financiers and off-takers have ramped up.

Progress has been somewhat stilted due to operational restrictions in place at Lake’s partner, Lilac Solutions, in California.

Lilac runs the brine pilot plant which has been producing the battery-grade sample lithium for Lake.

Shelter-in-place orders are due to lift next week, which should see Lilac and other supply-chain providers to reopen.

The importance of EV-grade materials was highlighted by a recent ‘EV Festival’ put together by Benchmark Mineral Intelligence with thousands of participants from across the sector.

Huge investment initiatives across Europe and Asia have also put the spotlight on the EV sector.

Lake’s Managing Director Steve Promnitz says the company is ready for the next steps.

“New projects such as Lake’s Kachi project, which can supply a battery-grade product with low impurities, will be essential in supporting the growth of the EV sector, and with a continued pricing disparity between high and low-grade product, we are in an excellent position to advance our flagship project,” he stated.

If the findings of Lake’s PFS and Orior’s report stand up, Lake could be very well-positioned to be at the forefront of the new EV wave.

Lake Resources is up 8.6 per cent to 3.8 cents per share as at midday AEST.

LKE by the numbers
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