Name of the Project
Kachi lithium brine project.

Location
Catamarca, 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 reached a conditional framework agreement with electric vehicle battery developer SK On for the supply of up to 25 000 t/y of lithium from the Kachi project, and a potential 10% stake in Lake through a strategic investment.

The agreement strengthens Lake’s long-term shareholder base and adds to the equity component required for the drawdown of debt facilities for project development.

The agreement with SK On will cover 50% of Kachi’s planned lithium production, an initial five-year term and the option for a further five years. The offtake will be priced on an agreed-upon market price formula, based on the average quoted price in the quotation period.

The agreement is subject to several conditions, including a positive definitive feasibility study (DFS) for Kachi, positive results from Lilac Solutions’demonstration plant, financial due diligence and product specifications.

The company reported earlier this year that the DFS will consider a production case of 50 000 t/y, given the increased demand from potential offtakers. The DFS is due for completion in the third quarter of 2022.

Key Contracts, Suppliers and Consultants
Lilac Solutions (lithium extraction testwork); Hatch (engineering and design services); and Citi and JP Morgan (finance coordinators of the Kachi project).

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