- Lake Resources (LKE) partners with Lilac Solutions to develop the Kachi Lithium Brine Project in Argentina with an environmentally friendly focus
- US-based Lilac will provide technology, engineering teams and an onsite demonstration plant to earn up to 25 per cent in Kachi
- After earning its stake, Lilac is required to funnel around $69 million into its pro rata share of future development costs
- Lake Resources shares last traded at 51.5 cents on September 21
Lake Resources (LKE) has partnered with Lilac Solutions to develop the Kachi Lithium Brine Project in Argentina.
Based in California, Lilac is a lithium extraction technology company with a mission to scale global lithium production to support the electric vehicle and energy storage transition.
The earn-in agreement will see Lilac contribute technology, engineering teams and an onsite demonstration plant to Kachi for the potential to earn an up to 25 per cent stake in the project, based on performance milestones.
After earning its interest, it will then be expected to put around US$50 million (A$69 million) towards its pro rata share of future development costs.
Notably, Lake said its partner’s low-cost production process offered higher lithium recovery rates than other technologies — 80 to 90 per cent — to produce battery-quality lithium carbonate of 99.97 per cent purity, while also protecting the local environment and water sources.
LKE’s managing director Steve Promnitz said the company had progressed methodically through testing and pilot-stage work and was pleased to establish the partnership.
“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,” he said.
“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.”
Lilac’s CEO Dave Snydacker said its technology could 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 said.
The deal follows an expression of interest received by LKE from the UK’s Export Credit Agency last month to finance around 70 per cent of the Kachi Project.
Lake Resources shares last traded at 51.5 cents on September 21, 2021.