Australia’s Lake Resources said on Wednesday that its production target for the Cachi lithium brine project in Argentina will be set at 50,000 tons per year of lithium carbonate, nearly double what it had previously forecast.
The company had previously set the target base case for a final feasibility study, which is used as the basis for raising funds, at 25,500 tons.
The target has increased based on potentially positive drilling results, increased demand from potential buying partners, interest funding from credit bureaus from Canada and the United Kingdom, and favorable policies from Argentina, among other reasons, Lake said in a statement.
“We are well positioned with supplier quality, leading-edge technology and key financial partnerships to secure an optimal set of purchase agreements that align with these expansion plans,” said Stu Crowe, President of LLC.
Lithium prices rose sharply last year as automakers began investing billions of dollars to transition to cleaner transportation amid an international drive to cut carbon emissions.
In 2021, the NSW-based miner joined forces with California-based clean tech firm Lilac Solutions to co-develop the Kachi project, in which Lilac will invest nearly $50 million.
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