Lake Resources (ASX:LKE) - Managing Director, Steve Promnitz
Managing Director, Steve Promnitz
Source: Lake Resources
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  • Lake Resources (LKE) signs a non-binding memorandum of understanding (MoU) with Ford Motor Company to negotiate an agreement for lithium offtake from the Kachi project in Argentina
  • The offtake proposal is for about 25,000 tonnes per annum of lithium from Lake’s flagship Kachi project, as Ford announces it is “sourcing deeper into the battery supply chain”
  • Both parties see this agreement as an opportunity for a potential long-term agreement
  • Lake Managing Director Steve Promnitz says the MoU supports the company’s strategy to be a key independent supplier into global lithium supply chains
  • LKE shares last traded at $1.86 per share

Lake Resources (LKE) has signed a non-binding memorandum of understanding (MoU) with Ford Motor Company to negotiate an agreement for lithium offtake from the Kachi project in Argentina.

The offtake proposal covers about 25,000 tonnes per annum of lithium from Lake’s flagship Kachi project in the Catamarca Province.

Ford said it was “sourcing deeper into the battery supply chain”.

“This is one of several agreements we’re exploring to help us secure raw materials to support our aggressive electric vehicle (EV) acceleration,” Ford Vice-President in EV industrialisation Lisa Drake said.

Both parties see this agreement as an opportunity for a potential long-term agreement, according to Lake.

Lake Managing Director Steve Promnitz said the MoU supports the company’s strategy to be a key independent supplier into global lithium supply chains.

Chairman Stu Crow said project financing was becoming increasingly tied to environmental, social and governance (ESG) credentials and investors, debt providers and offtakers and their customers were demanding new lithium projects adhere to strict ESG standards.

“Increasing customer and consumer scrutiny around lithium production’s environmental and ethical credentials drives our focus on sustainable extraction,” he said.

“Lake is committed to integrating sustainable development practices throughout our operations, minimising our environmental footprint and contributing to a clean energy future.”

LKE shares last traded at $1.86 on April 8.

LKE by the numbers
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