Following the success of a pilot phase at its Kachi lithium project in Argentina, Lake Resources NL (ASX:LKE, OTCQB:LLKKF) is looking to a new phase of commercial-scale development.
In the latest development, Lake lauded the production of 2,500 kilograms of lithium carbonate equivalents (LCEs) at Kachi, extracted using an ion exchange method developed by technology partner Lilac Solutions that negates the need for evaporation ponds.
The LCEs were extracted with 80% lithium recovery, 90% plant uptime and roughly a tenth of the water that would otherwise be required. Land use was also estimated to be around 1,000 times less.
Low in impurities
As a result, the lithium produced is low in impurities, allowing for efficient production of the high-purity commodity battery manufacturers need. Rejection of boron, for example, which is an impurity often difficult to remove, is greater than 99.9%.
The Kachi project is slated to be the first lithium brine asset in South America to produce lithium at a commercial scale without evaporation ponds. Once fully developed, the project will produce roughly 50,000 tonnes per year of battery-grade lithium.
In a joint statement, Lake Resources managing director David Dickson and Lilac chief executive David Snydacker said today’s milestone marked a new era in scalable lithium production.
“Lithium is a cornerstone of the energy transition — but limitations in production technology have led to increased costs, scarcity and extreme price volatility,” they said.
“Today, we’ve proven that it is possible to produce high-purity lithium faster and without evaporation ponds — all while protecting surrounding communities and ecosystems.”
Investors have welcomed this new milestone with shares as much as 13.05% higher in ASX trading this morning to A$0.52, while the company's market cap is approximately A$718.33 million.
Lake Resources and Lilac Solutions
After initial testing, Lake Resources and Lilac Solutions signed a partnership agreement in September 2021, under which both companies agreed to jointly fund and develop the Kachi project.
Lilac will contribute technology, engineering teams and the on-site demonstration plant, and may earn a 25% stake in Kachi based on the satisfaction of certain milestones.
Lilac gained an initial 10% interest in January 2023, after proving the demonstration plant could run continuously for more than 1,000 hours. The company is now eligible to take on another 10%, having successfully produced 2,500 kilograms of LCEs.
A further 5% may be acquired by Lilac once a refined lithium product is produced according to the standards required by Lake’s offtake partners.
Once Lilac has earned the full 25% interest, it will be required to contribute its share of development costs, estimated at roughly US$50 million (A$74.5 million).
The Kachi project
Located in the Puna region of northwest Argentina, the Kachi project covers 705 square kilometres worth of leases and lease applications over a brine-bearing basin 20 kilometres long, 15 kilometres wide and up to 800 metres deep.
In 2018, a maiden resource estimate was undertaken as part of a pre-feasibility study. The estimate identified 1.05 million tonnes of LCEs over an area of roughly 61 square kilometres. That figure was then doubled in January this year, and now measures 2.2 million tonnes of LCEs over an area of more than 81 square kilometres.
- by Oliver Gray