Independent testing of lithium carbonate produced from Lake Resources NL (ASX:LKE, OTCQB:LLKKF) and Lilac Solutions, Inc's Demonstration Plant for the joint Kachi Project in Argentina has confirmed grades and purity greater than 99.8%.
Lilac is Lake’s DLE technology partner in the world-class lithium development project. It is a cutting-edge lithium extraction technology company, which has developed a patented ion exchange technology that facilitates production of lithium from brine resources with high efficiency, minimal cost, and ultra-low environmental footprint.
It is expected the Kachi project will lead the industry in the production of high-quality lithium with a minimal environmental footprint.
Lake uses state-of-the-art ion exchange extraction technology for the production of sustainable, high-purity lithium from its flagship Kachi Project in Catamarca Province within the Lithium Triangle in Argentina.
This ion exchange extraction technology delivers a solution for two rising demands – high-purity battery materials to avoid performance issues and more sustainable, responsibly sourced materials with low carbon footprint and significant ESG benefits.
Commercial process systems validated
The independent test, performed by Saltworks with independent analysis by two third-party labs, has validated the major commercial process systems for the Kachi Project. It has also confirmed the project’s ability to produce high-quality, battery-grade lithium carbonate from Lake’s brine resource using Lilac DLE technology.
The quality of the Li2CO3 product exceeds the project design specification and the battery grade specifications of major South American brine lithium producers.
“This is a new process that has now been proven to produce high-grade lithium in our ‘mining and refining’ facility– this means a critical part of the value-adding chain is being captured by Lake,” LKE CEO David Dickson said.
“It also sets a new standard for what it means to be a responsible member of the lithium supply chain.”
About the testing
In January this year, Lake announced Lilac had successfully operated the Demonstration Plant for more than 1,000 hours and produced 40,000 litres of lithium chloride eluate before December 31, 2022. In doing so, it met important performance milestones in accordance with the agreed timeline.
Read: Lake Resources and tech partner Lilac Solutions achieve critical Project Kachi milestones
Following the production of the lithium chloride eluate by Lilac, it was then shipped to Saltworks, in Canada, and a portion was converted to lithium carbonate. This was then independently tested for purity.
The Lilac Demonstration Plant continues to operate and Lilac is close to finalising another milestone in processing 120,000 litres of eluate into battery-grade lithium carbonate.
“The Lilac team is excited to see these concrete results showing that our technology is not only faster with higher recovery, but also enables a higher purity product,” Lilac Solutions CEO Dave Snydacker said.
“Alongside Lake Resources, we are proving that it is possible to produce lithium – the cornerstone of our clean energy future – without damaging the planet we’re trying to save. I look forward to further development of a clean, socially responsible lithium supply chain, and the continued success of our joint Kachi project.”
The resource
Lake increased its mineral resource estimate to 2.2 million tonnes of lithium carbonate equivalent in measured and indicated categories and 3.1 million tonnes of inferred resources in January 2023 – 100% lift.
The company continues to drill and expects an updated JORC in the second quarter of 2023.
Read: Lake Resources doubles Kachi measured and indicated resource to 2.2 million tonnes lithium carbonate; 3.1 million tonnes in inferred category
Offtake agreements:
Given its progress, there is little surprise that Lake has already confirmed two offtake conditional framework agreements covering 50,000 tonnes per annum of lithium carbonate with WMC Energy and SK On.
The agreements would see both companies make a strategic equity investment in Lake of up to 10% of its issued capital prior to a Final Investment Decision.
These agreements are subject to a few condition precedents being met, including due diligence. Discussions are ongoing.
What’s next?
Lake has undertaken a rigorous evaluation of project timelines and estimated capital costs, which it expects to finalise in the second quarter of 2023.
The company is also advancing its definitive feasibility study (DFS) and has completed the evaluation of the processing plant.
It is now moving into the next phase of the project study and is aiming to complete the DFS by mid-2023.