Name of the Project
Kachi lithium brine project.

Location
Catamarca, in Argentina.

Project Owner/s
Lithium developer Lake Resources.

Project Description
A prefeasibility study (PFS) has demonstrated Kachi’s potential to deliver high-purity product – based on a sustainable and scalable process – required by battery makers.

The PFS envisages a long-life, low-cost operation, with a production target of 25 500 t/y of battery-grade lithium carbonate using direct lithium extraction technology based on ion exchange, which, in turn, is based on an indi­cated resource of one-million tonnes lithium car­bonate equivalent.

The process involves the treatment of about 23-million cubic metres a year of brine at 250 g/ℓ lithium, with an overall plant recovery of 83.2%. The eluate from the process is further concentrated and purified, and then fed into a conventional lithium carbonate plant.

No solvent extraction plant is required to remove boron.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.05-billion and an internal rate of return of 25%, with a payback from first product delivery of five years.

Capital Expenditure
The project entails an investment of $544-million.

Planned Start/End Date
Not stated.

Latest Developments
Lake Resources has signed a nonbinding memorandum of understanding (MoU) with Japan’s Hanwa Co for the supply of up to 25 000 t/y of lithium carbonate over a ten-year period from the Kachi project.

The MoU will allow for a minimum offtake of 15 000 t/y from the project, with the two parties also able to extend the offtake agreement by ten years.

Under the terms of the MoU, Hanwa will also consider providing financial support mechanisms, such as a meaningful equity investment, a potential prepayment on offtake and trade finance facilities, to secure a long-term agreement and build up a sustainable partnership with Lake.

Lake chairperson Stu Crow has said that the finalisation of a binding long-term agreement with Hanwa will bolster Lake’s financial position as it advances towards a final investment decision later this year.

The MoU and finalisation of a binding long-term agreement with Hanwa will provide for access to project-scale batteries to complement a solar farm energy source at the Kachi project with trade finance at favourable rates for installation.

Key Contracts, Suppliers and Consultants
Lilac Solutions (lithium extraction testwork) and Hatch (engineering and design services).

Contact Details for Project Information
Lake Wells, tel +61 2 9299 9690 or email hello@lakeresources.com.au.