Lake Resources doubles proposed production from Kachi lithium brine project

Lake Resources (ASX: LKE) has doubled its proposed production base case in its definitive feasibility study for the Kachi lithium brine project in Argentina.

The company has confirmed the definitive feasibility study will evaluate production of 50,000 tonnes per annum lithium carbonate equivalent from Kachi – up from the originally planned 25,000tpa lithium carbonate equivalent.

This expanded production scenario is underpinned by an expected increase to the resource estimate from ongoing drilling.

Also driving the decision to increase proposed production is rising demand from prospective offtake partners, which are seeking a transparent and environmentally friendly product.

“Given the increasing demand and the significant supply gap, Lake is focused on delivering high purity lithium carbonate at scale with meaningful environmental, social, governance (ESG) benefits,” Lake managing director Steve Promnitz said.

Mr Promnitz added the company had received indicative financial support for an increase in the size of the Kachi project from export credit agencies (ECA) in the UK and Canada along with support from “numerous ECA-supported banks”.

Lilac lithium extraction technology

As well as finance and offtake support, Lake has confirmed its technology partner Lilac Solutions’ direct lithium extraction process is scalable and cost effective.

Unlike conventional lithium brine production, Lake plans to use Lilac’s direct lithium extraction method, which does not require evaporation, consumes less water and has a smaller environmental footprint.

Lilac is earning a 25% interest in Kachi and is contributing its technology, engineering teams and an on-site demonstration plant.

The direct lithium extraction process is lower cost and offers high lithium recovery rates than traditional methods.

“The process is modular producing high purity lithium and can be ramped up quickly through pilot to commercial stages – this equity stake ensures a rapid commercialisation of the Lilac technology at the Kachi site,” Mr Promnitz said.

“With the Lilac technology we can efficiently deliver the large volumes of high-quality lithium chemicals needed by battery makers.”

“Importantly, this will be done in a way that is environmentally-friendly,” he added.

Expanded drilling

To underpin the proposed production, Lake has expanded its drilling at Kachi and its other nearby lithium brine projects – Olaroz, Cauchari and Paso.

Kachi has a current resource of 4.4 million tonnes of contained lithium carbonate equivalent.

A 10-hole for 4,000m program has been planned to kick-off at Olaroz, Cauchari and Paso this month.