Lake Resources NL (ASX:LKE, OTCQB:LLKKF) welcomes the resolution of a dispute between the company and its technology partner Lilac Solutions, allowing a reset of the relationship to focus on the delivery of the world-class Kachi project in the province of Catamarca, Argentina.
The companies have now agreed to a modified timetable which both are confident can be met.
As previously agreed, Lake will have certain redemption rights if Lilac fails to meet the agreed test criteria in a timely manner.
Consistent production of demonstration plants
The Kachi demonstration plant is operating continuously at 90% steady state, with over 600 hours completed to date and is approaching the 1,000 hour requirement.
This plant has now produced more than 15% of its total planned production since commissioning this quarter. Approximately 20,000 liters of lithium chloride have been produced to date and production is continuing according to the planned operational schedule.
The plant continues to produce lithium chloride solution that meets specifications between 1,900 and 3,800 milligrams per liter. Previous tests on Kachi’s brines at Lilac’s California headquarters in Oakland provided 1,400 to 2,354 milligrams per liter.
Lilac prepares samples to ship to Saltworks and its Oakland plant for conversion into lithium carbonate.
In addition, on-site observation and validation of the plant by Hatch Ltd is planned for the short term.
Lake CEO and Managing Director David Dickson said the progress and testing has been promising.
“We are fortunate to work with Lilac as a partner, who is also interested in doing things differently so that we can efficiently supply the large volumes of high-quality lithium chemicals that battery manufacturers need.
“Most 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, as well as the strong alignment of our businesses, are quite encouraging. »
Lilac Solutions CEO David Snydacker added, “Lilac and Lake are working closely together to set a new standard for the pace of project development in the lithium industry.
“Progressing the on-site plant from construction completion to shipping bulk samples of lithium chloride to specifications in just two months is significantly faster than conventional projects, where commissioning of Evaporation ponds generally takes many years.
“We plan to continue to improve the traditional project development schedule as we move toward commercial production, ultimately bringing Project Kachi online years ahead of competing projects.
“This will put the Kachi project in an excellent position to provide the lithium feedstock that automakers urgently need and capture the high prices we are seeing in the market due to the failure of conventional approaches.”
Lake is a clean lithium developer using direct mining 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 offers the solution needed for high purity battery materials to avoid performance issues, as well as more sustainable and responsibly sourced materials with a low carbon footprint and significant ESG benefits.
The Kachi project is in a prime location among low-cost producers, with a significant lease of 74,000 hectares and an expandable resource of 4.4 million tonnes of lithium carbonate equivalent for 25 years of production at 50,000 tonnes per year. year.