- Lake Resources (LKE) signs an investment and offtake agreement with Korean battery producer SK On
- Under the conditional deal, Lake will supply SK On with up to 25,000 tonnes of lithium per annum from its Kachi project in Argentina
- SK On will also nab a 10 per cent stake in Lake through the issue of new ordinary shares
- Lake says the deal strengthens its long-term shareholder base and supports Kachi’s development, and SK On says the deal secures it a stable lithium supplier for its US supply chain
- Lake Resources shares are up 1.52 per cent to $1.01 at 11:35 am AEDT
Lake Resources (LKE) has entered an agreement with battery manufacturer SK On for the offtake of up to 25,000 tonnes of lithium per annum from its Kachi project in Argentina.
The conditional offtake deal is for a five-year term with the option to extend for a further five years.
This agreement will also see SK On take a 10 per cent stake in Lake Resources through the issue of new ordinary shares, which will be based on LKE’s 20 trading-day volume-weighted average price prior to October 12.
Lake’s Executive Chair, Stu Crow, said the deal strengthened the company’s long-term shareholder base and added to the equity component required for the development of the Kachi project.
“The conditional framework agreement (CFA) delivers a long-term strategic agreement with SK On, one of the world’s pre-eminent lithium-ion battery producers with a major growing presence in the North American market,” Mr Crow said.
SK On Vice President Jinsuk Ryu said the agreement allowed SK On to secure a stable lithium supplier for its US supply chain.
“Lake fits particularly well with SK On’s ESG policy as it utilises environment-friendly direct lithium extraction technology for the production of lithium. With this CFA, both parties will strengthen mutual partnership to advance opportunities to secure sustainable sources of raw materials in the future,” Ms Ryu said.
The CFA is subject to Lake achieving certain conditions including a definitive feasibility study, Lilac demonstration plant results, financial due diligence, and product specifications.
Lake Resources shares were up 1.52 per cent to $1.01 at 11:35 am AEDT.