TORONTO (miningweekly.com) - Lithium  explorer, Lithium Americas Corp (LAC) planned to start producing at its Cauchari-Olaroz project in Argentina in 2014, CEO Waldo Perez said on Friday.

“The exact timing depends on the currently ongoing tests and we will work hard to better fine-tune the expected production date during this year,” he told Mining Weekly Online.

LAC listed on the TSX on Thursday, after having raised C$45-million in an initial public offering. The company boasts Japanese conglomerate Mitsubishi and Canadian automotive component maker Magna International as shareholders.

Both of these strategic shareholders are keen on securing cheap lithium supplies for electric vehicle batteries.

On the lithium market, Perez said there are differing views on demand and pricing. “Worldwide lithium consumption increased at a rate of 7% to 8% a year for the last ten years and the more conservative analysts do no not think this rate will change dramatically.

“The big source of uncertainty obviously, is the impact that the electric car on the overall automotive industry.”

LAC is busy completing a scoping study, which will be followed by a prefeasibility study. A full feasibility study will be completed in 2012, Perez said.

“We are focused on developing a significant resource in one of the most prolific areas for Lithium in the world. As a brine resource rather than hard rock, we will be a low cost producer, which will put us in a very competitive position.”

LAC was trading at C$1,81 a share on Friday, giving it a market capitalisation of C$133-million.

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