PERTH (miningweekly.com) – Lithium developer Lake Resources has inked a non-binding memorandum of understanding (MoU) with motoring major Ford Motor Company over the potential supply of lithium from the Kachi project in Argentina.
Under the MoU, the two companies would negotiate a potential offtake agreement for up to 25 000 t/y of lithium from Kachi.
This was the second MoU signed by Lake in recent months, and followed a similar one with Japan’s Hanwa Co. for the supply of up to 25 000 t/y of lithium carbonate over a ten-year period.
“Both Lake and Ford see this as an opportunity for a potential long-term agreement with the ability to scale up environmentally responsible production and participate in Lake’s other projects to ensure high-quality lithium products are available to Ford,” Lake Resources MD Steve Promnitz said.
“This MoU with Ford supports Lake’s strategy to be a key independent supplier into global lithium supply chains and ensure the security of supply to customers.”
Lake chairperson Stu Crow said that the two MoUs, along with the UK and Canada Export Credit Agencies’ indicative provision of debt finance, for around 70% of the Kachi project’s capital requirements, provided a framework of support for Lake’s TARGET 100 Program, which has the goal of producing annually 100 000 t of high purity lithium chemical to market by 2030.
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 is due for completion in mid-2022.