Lake Resources to develop Kachi lithium in two stages, first battery grade output by 2027

Argentine lithium brine play Lake Resources (ASX: LKE) has decided to further de-risk its Kachi project by adopting a two-stage development schedule.

For its 50,000 tonnes per annum production target, the company will now have a phased approach of two 25,000tpa operations.

This also allows Lake to accelerate the development timeline, bringing forward production.

Full production by 2030

Now the timetable allows for the first stage, handling 25,000tpa, by 2027, with the second phase now due to come online in 2030.

Kachi is located in Catamarca province of Argentina, within the “lithium triangle’ that straddles the borders with Bolivia and Chile.

Chief executive officer David Dickson said of the new plans that they show a clear path to battery grade lithium carbonate production.

The company will be using direct lithium extraction technology developed by Lilac Solutions of Oakland, California.

“Our new, phased approach de-risks project execution while ensuring battery grade lithium carbonate comes to market in a cleaner, efficient way,” Mr Dickson said.

Increase in high grade resource

The company also noted that it had confirmed a 37% increase in the measured higher-grade resource at Kachi which will provide supply over 25 years.

The potential Kachi resource expansion to 8.1 million tonnes of lithium carbonate will support further expansion of the project, says Lake.

The two-phase development model will, the company adds, allow adjusted time on the definitive feasibility study (DFS) and will allow greater project definition, an optimal power solution and “infrastructure considerations”.

The last mentioned will means less reliance on a power grid connection for the first plant start-up.

The DFS for stage one is expected to be completed in December this year.

Lowering environment disruption

The new plan will allow the company to mitigate the environmental impact of the Kachi project.

Lake will be using proven extraction and reinjection techniques which will mean no significant disruptions of the water table.

Lake has the largest lithium lease area in Argentina with acreage totalling around 2,000 sq km.