CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Australian lithium miner partners with US cleantech firm for Argentina project

By Debabrata Das

08:50, 22 September 2021

A breaker being used at an open-cast lithium mine
A breaker being used at an open-cast lithium mine – Photo: Shutterstock

Australian lithium miner Lake Resources said Wednesday (22 September) that it has agreed to partner with US-based clean technology firm Lilac Solutions in its Kachi Lithium Brine Project in Argentina.

Lilac will contribute to technology and engineering teams, as well as to an on-site demonstation plant for a 25% stake in the project, using performance-based milestones. It will also fund approximately $50m once it gets the 25% stake. The amount is approximately equal to Lilac’s pro-rate share of future development costs, Lake Resources said in a statement.

Lake Resources added that it chose to partner Lilac because its production process is lower-cost and offers higher lithium recovery rates compared to other technologies, while also protecting the local environment, including water resources.

Disruptive tech

“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,” said Lake Resources’ managing director Steve Promnitz.

“This equity stake ensures a rapid commercialisation of the Lilac technology at the Kachi site where end-users of high-purity battery materials were demanding more environmentally friendly production methods,” he added. 

AMD

117.65 Price
-1.510% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 0.07

TSLA

213.73 Price
+2.630% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 0.29

NVDA

392.79 Price
-1.610% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 0.16

AMZN

124.23 Price
+0.840% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 0.14

The project’s definitive feasibility study and environmental and social impact assessment will be completed by the second quarter of 2022.

Lake Resources said that the project is anticipated to start production in 2024 with an output of 25,500 tonnes per annum of lithium carbonate.

Lake Resources shares rise

Following the announcement, Lake Resources’ shares soared and closed 18.44% higher on the ASX at AUD0.61 per share.

Read more: Australia’s Vulcan Energy signs lithium offtake agreement with LG Energy

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading