Lake Resources NL (ASX:LKE, OTCQB:LLKKF) welcomes the resolution of a dispute between the company and its technology partner Lilac Solutions, enabling a reset of the relationship in order to focus on delivering the world-class Kachi Project in Catamarca Province, Argentina.
The companies have now agreed to an amended timeline which both are confident can be achieved.
As previously agreed, Lake will have certain buy-back rights if Lilac does not meet agreed testing criteria in a timely manner.
Consistent demonstration plant production
The demonstration plant at Kachi is operating continuously at 90% of steady state, with more than 600 hours completed to date and moving towards the 1,000-hour requirement.
This plant has now produced more than 15% of its total forecast output since coming online this quarter. About 20,000 litres of lithium chloride have been produced to date and production is ongoing, consistent with its planned operational schedule.
The plant continues to produce in-spec lithium chloride solution between 1,900 and 3,800 milligrams per litre. Previous testing on Kachi brines at Lilac’s California headquarters in Oakland delivered 1,400-2,354 milligrams per litre.
Lilac is preparing samples for shipment to Saltworks and to its facility in Oakland for conversion into lithium carbonate.
In addition, on-site observation and validation of the plant by Hatch Ltd is due in the near term.
Promising progress
Lake chief executive officer and managing director David Dickson said the progress and test-work being achieved was promising.
“We are fortunate to be working with Lilac as our partner, who is equally interested in doing things differently so we can efficiently deliver the large volumes of high-quality lithium chemicals needed by battery makers.
“Importantly, this lithium can be produced cleanly and in a way that respects and involves local communities and protects the environment.
“Lilac has worked extensively with Kachi brine since 2020, generating the data needed for engineering studies. These next steps, along with the strong alignment of our companies, are quite encouraging.”
Fast-paced project
Lilac Solutions chief executive officer David Snydacker added: “Lilac and Lake are working together closely to set a new standard for pace of project development in the lithium industry.
"Progressing the on-site plant from completion of construction to shipping of on-spec bulk samples of lithium chloride in just two months is significantly faster than conventional projects move, where commissioning of evaporation ponds typically takes many years.
“We expect to continue to improve upon the traditional project development timeline as we advance toward commercial production, ultimately bringing the Kachi project online years ahead of competing projects.
“This will put the Kachi project in an excellent position to supply the lithium raw material urgently needed by automakers and capture the high prices we see in the market due to the failure of conventional approaches.”
Prime location
Lake is a clean lithium developer utilising direct extraction technology for the production of sustainable, high-purity lithium from its flagship Kachi Project in Argentina’s Lithium Triangle, among three other projects covering 220,000 hectares.
This direct extraction technology delivers the solution needed for high-purity battery materials to avoid performance issues, as well as more sustainable, responsibly sourced materials with low-carbon footprint and significant ESG benefits.
The Kachi project is in a prime location among low-cost producers, with a large lease holding of 74,000 hectares and expandable resource of 4.4 million tonnes of lithium carbonate equivalent for 25 years of production at 50,000 tonnes per annum.