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Kachi Lithium Project; the Rise of Lake Resources N.L. (OTCMKTS: LLKKF) (ASX: LKE)

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Lake Resources N.L. (OTCMKTS: LLKKF) (ASX: LKE) is making a powerful run up the charts in recent days moving 10x over its lows last summer and emerging as a volume leader in small caps easily topping $10 million in dollar volume on Monday alone. Lake’s flagship Kachi Project, located in the Lithium Triangle in Argentina, the prime location globally for low cost lithium production, covers a massive 170,000 acres and has recently produced high purity lithium carbonate samples (99.9%) with very low impurities. A recent pre-feasibility study (PFS) on Kachi showed the potential for a large, long-life low-cost operation. The Company is well financed moving forward having raised close to $10 million with Acuity Capital and more recently raising another $20.6 million from institutions in Australia, North America and Europe. Tier 1 EV and battery makers have been seeking more sustainable, responsibly sourced materials in their supply chain, as stated by VW, Daimler, BMW, Tesla and the European Commission, and this is driving demand for Lake’s product.  Lake aims to sustainably produce the cleanest quality lithium carbonate at scale, with demand rapidly increasing for battery materials for use in the fast-growing battery market as the adoption of electric vehicles accelerates globally.

Lake Resources is at the right place the right time; according to a report from reportlinker.com:  In the global Lithium ion Battery segment, USA, Canada, Japan, China and Europe will drive the 16.7% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$10.5 Billion in the year 2020 will reach a projected size of US$30.8 Billion by the close of the analysis period. This huge demand for Lithium ion batteries is being driven by the enormous Global Electric Vehicle Battery Industry valued at USD 35.16 Billion in 2019 according to Verified Market Research and projected to reach USD 133.46 Billion by 2027, growing at a CAGR of 18.05% from 2020 to 2027.

Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) is a clean lithium developer utilizing clean, direct extraction technology for the development of sustainable, high purity lithium from its flagship Kachi Project, as well as three other lithium brine projects in Argentina. Lake is quickly emerging as an efficient, responsibly-sourced, environmentally friendly and cost competitive supplier of high-purity lithium, which is readily scalable, and in demand from Tier 1 electric vehicle makers and battery makers. Lake’s technology partner, California-based Lilac Solutions has developed efficient and disruptive clean technology to produce sustainable high purity lithium that has a small environmental footprint  by returning most of the brine to its source. The consistently high quality product together with its environmental and social benefits, make this in demand from tier one EV and battery makers. Lilac’s technology has been backed by the Bill Gates-led Breakthrough Energy Fund and MIT’s The Engine Fund, among other leading sustainability investors.

High purity lithium carbonate samples (99.9%) with very low impurities have been produced from lithium brines from Lake’s flagship Kachi Project. The growth of higher density batteries to drive the latest EVs has significantly increased demand for a consistently high purity product (battery quality) with low impurities, providing premium pricing for Lake’s planned product. Lake’s projects are located in the Lithium Triangle, the prime location globally for low cost lithium production from large projects. The Kachi Project covers 70,000 ha (170,000 acres) over a salt lake south of Livent’s lithium operation, with a large indicated and inferred resource of 4.4 Mt LCE (Indicated 1.0Mt, Inferred 3.4Mt). A pre-feasibility study (PFS) on Kachi by a tier 1 engineering firm has shown the potential for a large, long-life low-cost operation, with competitive production costs at the lower end of the cost curve similar to current lithium brine producers.

By using a benign water treatment process to produce lithium, Lake avoids any mining and returns virtually all water (brine) to its source without changing its chemistry (apart from lithium removal). The environmental footprint is therefore far smaller than conventional brine evaporation pond processes or of hard rock mining, providing a better outcome for local communities and the environment. Tier 1 EV and battery makers have been seeking more sustainable, responsibly sourced materials in their supply chain, as stated by VW, Daimler, BMW, Tesla and the European Commission, and this is driving demand for Lake’s product. With analysts pointing to an increasing supply deficit for battery-quality lithium, Lake’s projects are in the right location at the right time and are ready for development.

Earlier this month Lake Resources secured DTC approval to allow real-time electronic clearing and settlement in the United States for its OTCQB-listed common shares through the Depository Trust & Clearing Corporation (“DTCC”). The move will simplify trading and enhance liquidity for investors in North America and globally, amid a continued upturn in the lithium sector on the back of the accelerating EV revolution.

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Last week the Company reported  shallow drill testing is underway on-site, as part of development activities required for the Definitive Feasibility Study (DFS) at the Company’s flagship Kachi Lithium Brine Project, Argentina. Geophysical studies have assisted the planning of the shallow wells (up to 60 metres deep). These will be followed by further geotechnical studies, in addition to recent works conducted on proposed sites for Lilac’s direct lithium extraction demonstration plant and for the future production plant.

An additional 20,000 litres of Kachi brines will be extracted and shipped for further processing at Lilac’s pilot module in California. This data is a key part of the DFS, which formally commenced earlier this month (refer ASX release 8 January 2021). Lake aims to sustainably produce the cleanest quality lithium carbonate at scale, with demand rapidly increasing for battery materials for use in the fast-growing battery market as the adoption of electric vehicles accelerates globally.

Lake is well financed moving forward having raised close to $10 million with Acuity Capital and more recently raised another $20.6 million from institutions in Australia, North America and Europe. The company says its Kachi lithium brine project in Catamarca province of Argentina is now fully financed through to the construction phase that begins in 2022.

Novonix Progress –  leading battery researcher Novonix continues its test work on Lake’s high purity lithium carbonate, which will be used together with commercial battery cathode precursor materials, to form a NMC622 cathode that will then be processed into NMC622 lithium-ion batteries for testing. This will enable Lake and its potential customers to make direct comparisons of Lake’s lithium product’s performance in familiar battery chemistries. As reported, initial indications are anticipated to be reported next month.

Lake’s Managing Director Steve Promnitz commented: “Lake has started 2021 on the front foot by formally launching our Kachi DFS, and ramping up engagement with investors and potential industry partners. Interest in the sector has never been stronger in environmentally responsible, direct lithium extractions.”

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Lake Resources N.L. is making a powerful run up the charts in recent days moving 10x over its lows last summer and emerging as a volume leader in small caps easily topping $10 million in dollar volume on Monday alone. Lake’s flagship Kachi Project, located in the Lithium Triangle, the prime location globally for low cost lithium production, covers a massive 170,000 acres and has recently produced high purity lithium carbonate samples (99.9%) with very low impurities. A recent pre-feasibility study (PFS) on Kachi showed the potential for a large, long-life low-cost operation. The Company is well financed moving forward having raised close to $10 million with Acuity Capital and more recently raising another $20.6 million from institutions in Australia, North America and Europe. Tier 1 EV and battery makers have been seeking more sustainable, responsibly sourced materials in their supply chain, as stated by VW, Daimler, BMW, Tesla and the European Commission, and this is driving demand for Lake’s product.  Lake aims to sustainably produce the cleanest quality lithium carbonate at scale, with demand rapidly increasing for battery materials for use in the fast-growing battery market as the adoption of electric vehicles accelerates globally. Lake Resources is at the right place the right time; according to a report from reportlinker.com:  In the global Lithium ion Battery segment, USA, Canada, Japan, China and Europe will drive the 16.7% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$10.5 Billion in the year 2020 will reach a projected size of US$30.8 Billion by the close of the analysis period. This huge demand for Lithium ion batteries is being driven by the enormous Global Electric Vehicle Battery Industry valued at USD 35.16 Billion in 2019 according to Verified Market Research and projected to reach USD 133.46 Billion by 2027, growing at a CAGR of 18.05% from 2020 to 2027. We will be updating on Lake Resources when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Lake Resources.

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Disclosure: we hold no position in Lake Resources either long or short and we have not been compensated for this article

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