In a move to accelerate the time to first lithium production as well as to de-risk project execution, Lake Resources NL (ASX:LKE, OTCQB:LLKKF) will construct two 25,000 tonnes per annum (ktpa) plants at its Kachi Project in Argentina.
The company utilising direct lithium extraction (DLE) technology to produce cleaner battery-grade lithium carbonate intends to provide clear milestones based on the two-phase approach.
"The plans announced today show a clear path to battery-grade lithium carbonate production in 2027 and phased expansion to a target of 50ktpa by 2030," Lake chief executive officer David Dickson said.
“Our new, phased approach de-risks project execution while ensuring battery-grade lithium carbonate comes to market in a cleaner, efficient way.
“This approach also provides expansion optionality to 50ktpa, and potentially more.”
Boosting confidence
Over the past nine months, the company has leveraged its expertise in drilling, hydrogeology and the construction of large, specialty chemical projects to comprehensively reassess the Kachi project.
This evaluation has resulted in a refined path to production that maximises execution efficiency while unlocking value at the same time.
Sustained drilling activities throughout the year have allowed Lake to raise the measured and indicated (M&I) resource estimate for Kachi to 2.93 million tonnes of lithium carbonate equivalent (LCE) from 2.19 million, sufficient to support more than 25 years of the on-site demonstration plant’s life.
Additionally, the potential expansion of the Kachi resource to 8.1 million tonnes of lithium carbonate equivalent (LCE) opens up further expansion opportunities for the company.
READ: Lake Resources confirms high-grade Kachi lithium carbonate in independent tests
Dickson said the phased production approach offered several benefits, including:
- Taking full advantage of potential resource upside;
- Implementing a 'design one, build many' approach to improve productivity based on lessons learned;
- Adopting a more flexible power solution and reducing reliance on the grid for plant start-up;
- Providing flexibility in plant size and product type to adapt to market conditions;
- Managing potential reservoir impacts effectively; and
- Reducing peak labour requirements during construction, making operations more resilient.
Lake aims to complete a definitive feasibility study (DFS) for the Kachi project by December.