Lake Resources share price leaps 10% on ‘excellent early results’

The Lake Resources NL (ASX: LKE) share price is rocketing after the company revealed its Kachi Project’s demonstration plant has already produced at-spec lithium product.

The Lake Resources share price is soaring 10.38% on the back of the news. It’s currently trading at $1.17.

Let’s take a closer look at today’s news from the S&P/ASX 200 Index (ASX: XJO) lithium developer.

Lake Resources share price surges on Kachi update

The Lake Resources share price is rocketing on news of a major milestone at the company’s Kachi Project.

It’s now processing Kachi brines and has already delivered at-spec product in initial test work as optimisation continues.

Construction of the plant, as well as wet and dry commissioning, took place in September and October.

The ASX 200 lithium favourite is partnering with Lilac Solutions to provide the tech used by the demonstration plant.

The first samples of lithium chloride from the project should be shipped for conversion into lithium carbonate within a fortnight.

Commentary from the partners

Lilac CEO David Snydacker commented on the “excellent early results” released today, saying:

Just one month after the start of wet commissioning, we are already achieving 80% lithium recoveries even as we complete the commissioning process and increase recoveries.

We are excited to expand our collaboration with the Lake team as we work to fast-track commercial-scale production of lithium carbonate.

Lake expects that, following the samples’ conversion into lithium carbonate, the product will be qualified by a tier one battery maker to validate its specifications.

Lake CEO David Dickson was “delighted” by the early success and is now focused on future steps. Dickson said:

We look forward to seeing the test work move into to steady state and then for the process to be validated by Hatch so that work on the DFS can be completed.

Meanwhile, Lake Resources chair Stu Crow heralded Lilac’s technology as one that will disrupt the battery materials industry. That’s due to its scalability, low cost, ESG benefits, and consistent product quality.

Today’s gain sees the Lake Resources share price 15.84% higher than it was at the start of 2022. It has also gained 25.8% since this time last year.

Comparatively, the ASX 200 has fallen 6% year to date and 4.4% over the last 12 months.

The post Lake Resources share price leaps 10% on ‘excellent early results’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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