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Lake Resources finds offtake partner at Kachi

6th October 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – Lithium developer Lake Resources has reached a conditional framework agreement (CFA) with commodity supply solution provider WMC Energy over the potential offtake of up to 25 000 t/y of battery grade lithium from the Kachi project, in Argentina, and a potential 10% stake in Lake.

Under the terms of the proposed agreement, WMC would undertake a 10% investment in Lake priced at A$1.20 a share, to support the development of the Kachi project, and would take up to 50% of the project’s yearly lithium production, or up to 25 000 t/y of lithium carbonate.

The offtake term will run for an initial ten years, with an option to extend the term by another five years, and the offtake will be priced on agreed market price formula.

New Lake CEO and MD David Dickson said the CFA cemented Lake’s ability to scale up the production of lithium in an environment-friendly fashion and offered partners like WMC an opportunity to participate in Lake’s other projects.

“As Lake moves to develop these adjacent projects, a growing supply of high-quality lithium products becomes available to WMC and its partners and customers across the US and Europe.

“Increasing customer and consumer scrutiny around the environmental and ethical credentials of lithium projects, particularly from the European markets, drives our focus on sustainable extraction,” Dickson said.

A previously completed updated prefeasibility study estimated that the Kachi project could produce 25 500 t/y of lithium carbonate over a mine life of 25 years, with capital costs estimated at $540-million.

The company said earlier this year that the definitive feasibility study (DFS) would consider a production case of 50 000 t/y, given the increased demand from potential offtakers. The DFS was due for completion in the third quarter of this year.

“WMC is excited to support Lake Resources in its endeavours to make the Kachi project a success. The engagement under the CFA will help Lake Resources expand its downstream footprint across the European and North American lithium-ion battery supply chain, enabling Lake to optimally benefit from the anticipated growth in demand for battery materials like lithium carbonate across these markets,” said WMC director of corporate business development for the battery materials team Amrish Ritoe.

“With our extensive network in Europe and North America, we are well positioned to create a partnership with Lake and others that will help Lake to accelerate the development of the Kachi project.”

Edited by Creamer Media Reporter



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