Australia-based company Lake Resources and US-based lithium extraction firm Lilac Solutions have entered into a technology and funding partnership to develop Lake’s Kachi lithium brine project in Argentina.
Under the agreement, Lilac Solutions will contribute technology, engineering teams, and an on-site demonstration plant, earning in to a maximum 25% stake in Lake’s Kachi project based on performance-based milestones.
Lake’s Managing Director, Steve Promnitz said the partnership agreement follows extensive successful test-work on the Lilac production process, which offers higher lithium recovery rates (80-90%) than other technologies to produce battery quality lithium carbonate (99.97% purity), while also protecting the local environment, including water resources.
“We have progressed methodically through testing and pilot stage work and are now pleased to have the partnership established,” Mr Promnitz said.
“Lilac’s technology is truly disruptive as it has taken a non-mining tech solution which cuts operating costs and boosts lithium recovery from our brines.
“The process is modular producing high purity lithium and can be ramped up quickly through pilot to commercial stages – this equity stake ensures a rapid commercialization of the Lilac technology at the Kachi site.”
Lilac’s CEO, Dave Snydacker, described the Kachi project as ‘a globally significant lithium resource’.
“With the Lilac technology we can efficiently deliver the large volumes of high-quality lithium chemicals needed by battery makers,” he continued.
“Importantly, this will be done in a way that is environmentally-friendly. We’ve worked extensively with this brine, generating the data needed for engineering studies, and it is a fantastic fit for the Lilac technology.
“We’re thrilled to be partnering with Lake, and the Lilac team is excited to demonstrate our technology on site at Kachi and advance the project.”
Lake said a Definitive Feasibility Study (DFS) and an Environmental and Social Impact Assessment (ESIA) covering the Kachi Project are well-advanced and targeting completion in Q2, 2022.
According to the company’s statement, Lake is funded to the final investment decision (FID) on construction finance for Kachi, anticipated in mid-2022, followed by construction, targeting 25,500 tonnes per annum (tpa) lithium carbonate (LCE) production, with commissioning and production in 2024.
“An expansion study to 51,000 tpa LCE is anticipated at a similar time as the DFS,” reads the statement.