Lake Resources NL (ASX: LKE; OTC: LLKKF) and Lilac Solutions, Inc. are pleased to announce that after extensive successful test-work, they have entered into a partnership for technology and funding to develop Lake's Kachi Lithium Brine Project (Kachi) in Argentina.
Under the terms of the partnership earn-in, Lilac is able to achieve an equity stake in the Kachi project with certain corresponding project funding obligations, while providing its leading technology to advance the project. 'We have progressed methodically through testing and pilot stage work and are now pleased to have the partnership established,' Lake's Managing Director, Steve Promnitz said. 'Lilac's technology is truly disruptive as it has taken a non-mining tech solution which cuts operating costs and boosts lithium recovery from our brines.
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 commercialization of the Lilac technology at the Kachi site.' Mr. Promnitz said end users of high purity battery materials were demanding more environmentally friendly production methods and Lilac's innovative and efficient direct extraction method sets the new industry standard
Lilac's Chief Executive Officer, Dave Snydacker, said the Kachi project is a globally significant lithium resource. '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. We've worked extensively with this brine, generating the data needed for engineering studies, and it is a fantastic fit for the Lilac technology.
'We're thrilled to be partnering with Lake, and the Lilac team is excited to demonstrate our technology on site at Kachi and advance the project,' Mr Snydacker said. Lake Resources Chairman, Stu Crow, said: 'With a successful capital raising; partnering with a leader in lithium processing that will place us in the bottom quartile on the cost curve and getting an Expression of Interest for debt funding from the UK's Export Credit Agency - it has been a busy few months for Lake.
'We have all worked hard to align Lilac's industry leading technology and our project funding in order to accelerate development and production of the resource. 'We are closing the gap to being fully funded when you assume the DFS and other requirements for UKEF are met. There aren't many near term lithium projects that can say they are funded to production.' He said recent research on the lithium market from Macquarie and J.P. Morgan has been encouraging, with Macquarie forecasting that the lithium market is now likely in a perpetual deficit while J.P. Morgan said supply will struggle to keep up with demand, with a perpetual deficit visible beyond 2030 until more projects are defined by the industry. Mr. Crow said he was also encouraged by developments on the ground in Argentina. 'The words ESG means one thing to investors, but to our people on the ground and local communities in Catamarca Province, the Lilac processing technology means a much more efficient use of limited water resources, better recovery rates, and less impact on the land surface. 'We'll also be adding renewable power to the project as part of the DFS.'
Mr. Crow said all levels of the Argentinean Government were doing their best to encourage lithium development and the advancement of local communities, but governments were relying on companies like Lake and Lilac to make the technical innovations that would benefit the local environment and communities.
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About Lake Resources NL
Clean high purity lithium using efficient disruptive clean technology - in demand by EV makers and lithium-ion batteries Lake Resources NL (ASX: LKE, OTC: LLKKF) is a clean lithium developer utilising direct extraction technology for production of sustainable, high purity lithium from its flagship Kachi Project in Catamarca Province within the Lithium Triangle in Argentina among other projects covering 220,000 ha.
About Lilac Solutions
Inc Lilac Solutions is a lithium extraction technology company based in Oakland, California. Lilac has developed a patented ion exchange technology that facilitates production of lithium from brine resources with high efficiency, minimal cost and ultra-low environmental footprint. Lilac's mission is to scale global lithium production to support the electric vehicle transition and renewable energy storage transition.