Lake Resources NL’s Kachi lithium deposit (ASX: LKE, OTCQB: LLKKF) in Argentina has caught the eye of one of the world’s largest automakers.
Automotive monolith Ford has signed a non-binding memorandum of understanding with the clean lithium developer to negotiate an offtake agreement.
Nothing is set in stone, but the deal allows Ford to recover about 25,000 tonnes of lithium annually from Lake’s Kachi asset as part of a strategic collaboration.
Overview: The non-binding levy memorandum is the second of its kind for Lake, which believes the agreements further reduce project risks for financiers and investors.
Support for “aggressive acceleration of electric vehicles”
Today’s announcement comes as automakers around the world begin developing the electric vehicles (EVs) of the future.
“As we’ve shared, Ford is sourcing deeper in the battery supply chain,” said Lisa Drake, vice president of electric vehicle industrialization at Ford.
“This is one of many deals we are exploring to help us secure raw materials to support our aggressive acceleration of electric vehicles,” she continued.
Lake general manager Steve Promnitz echoed Drake’s sentiments in a market announcement today.
“Lac and Ford see this as an opportunity for a potential long-term agreement with the possibility of increasing environmentally friendly production and participating in Lake’s other projects to ensure high quality lithium products are available for Ford,” Promnitz explained.
“This MoU with Ford supports Lake’s strategy to be a key independent supplier in global lithium supply chains and to provide security of supply for customers.”
It’s all about ESG
Lake Chairman Stu Crow said project finance is increasingly tied to ESG credentials and investors, debt providers and buyers and their customers are demanding that new lithium projects meet ESG standards. strict.
“Client scrutiny from customers and consumers regarding the environmental and ethical credentials of lithium production drives our focus on sustainable extraction,” Crow said.
“Lake Resources is committed to integrating sustainable development practices into all of its operations, minimizing its environmental footprint and contributing to a clean energy future.
Broaden collection horizons
This is not the first memorandum of understanding Lake has signed with a lithium buyer.
Late last month, the company announced that it collaborates with the Japanese trading house Hanwaalso to negotiate the withdrawal of up to 25,000 tons of lithium from Kachi per year.
Stu says the MoUs are all part of Lake’s mission to develop a clean lithium supply chain that will meet global environmental requirements for electric vehicles.
“Together with the indicative provision of debt financing from UK and Canadian export credit agencies for approximately 70% of the capital requirements of the Kachi project, this provides a supportive framework for Lake’s TARGET 100 program, which aims to produce 100,000 tons of high quality annually. purity lithium chemical on the market by 2030,” he concluded.