Why is the Lake Resources stock price falling again?

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The Lake NL Resources (ASX: LKE) The stock price continued to fall on Friday.

In afternoon trade, shares of the lithium developer are down nearly 3% at 90 cents.

This means the Lake Resources share price is now down around 30% since last week.

Why is the Lake Resources stock price falling?

Investors sold Lake Resources’ share price today amid another market sell-off.

Selling was strongest in high-risk assets such as lithium stocks. It saw people like Liontown Resources Limited (ASX:LTR) and Pilbara Minerals Ltd (ASX:PLS) are down 5% and 3% respectively today.

What about the rest of its declines?

This week, Lake Resources’ share price also weighed particularly heavily on news of a dispute between the company and its partner Lilac Solutions.

The company revealed that the dispute concerns the date by which certain steps must be completed for Lilac to obtain a 25% stake in the Kachi Lithium project. Lake estimates that these milestones must be achieved by September 30, while Lilac estimates that he has until November 30 to do so.

To settle the dispute, Lake exercised its right to settle the dispute either by agreement between Lake and Lilac or by arbitration.

This is particularly worrying for investors as Lake’s Kachi project relies heavily on Lilac’s unproven DLE technology. In fact, he recently commented on Lilac’s technology. It said:

Lake believes DLE will become the primary method of lithium mining, as it is the only practical way to increase lithium supply in a sustainable manner and in a manner consistent with increasing ESG scrutiny of lithium projects. .

However, in the lithium industry, not all DLE processes are the same. That’s why Lake has taken the time to identify the process that is not only the most efficient, but also delivers a product that represents the most socially and environmentally sustainable approach to lithium exchange extraction. DLE ions and managed brine re-injection.

Investors are no doubt hoping that this dispute will not have an impact on the partnership. But time will tell if this is the case.

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