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(Kitco News) – Lithium development company Lake Resources (ASX: LKE; OTC: LLKKF) has signed a non-binding memorandum of understanding with Ford Motor Company.
Lake announced the deal today.
The proposed offtake involves approximately 25,000 tonnes per annum (tpa) of lithium from the Kachi project, located in Argentina.
To extract the lithium, Lake said he would use direct extraction technology, which he says is less disruptive than other extraction methods.
“This method of producing high-purity lithium has the potential to revolutionize and disrupt the battery materials sourcing industry because it is scalable, low cost, and delivers consistent product quality with a significant ESG benefit,” the company writes. .
The levy is in addition to another agreement, which should help move the project forward, Lake Chairman Stu Crow said.
“This MoU with Ford follows Hanwa’s MoU. With the indicative provision of debt financing from UK and Canadian export credit agencies for approximately 70% of the project’s capital requirements Kachi, this provides a framework to support Lake’s TARGET 100 program, which has the goal of producing 100,000 tonnes of high-purity lithium chemicals annually for commercialization by 2030,” he said.
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