Clean lithium developer Lake Resources NL (ASX: LKE) (OTC: LLKKF) has signed an offtake of approximately 25,000 tonnes per annum (tpa) of lithium from the Kachi Project in Argentina in a non-binding Memorandum of Understanding (MoU) with Ford Motor Company.
“As we’ve shared, Ford is sourcing deeper into the battery supply chain,” said Lisa Drake, Ford’s vice president, EV Industrialization. “This is one of several agreements we’re exploring to help us secure raw materials to support our aggressive EV acceleration,” she said.
Steve Promnitz, Lake’s Managing Director, said both Lake and Ford see this as an opportunity for a potential long-term agreement with the ability to scale up environmentally responsible production and participate in Lake’s other projects to ensure high-quality lithium products are available to Ford.
“This MoU with Ford supports Lake’s strategy to be a key independent supplier into global lithium supply chains and ensure the security of supply to customers,” Mr Promnitz said.
Lake’s Chairman Stu Crow said project financing was becoming increasingly tied to ESG credentials and that investors, debt providers, and off-takers and their customers are demanding that new lithium projects adhere to strict ESG standards.
““Increasing customer and consumer scrutiny around lithium production’s environmental and ethical credentials drives our focus on sustainable extraction,” Mr Crow said.
“Lake Resources is committed to integrating sustainable development practices throughout our operations, minimising our environmental footprint, and contributing to a clean energy future.
“This MoU with Ford follows the Hanwa MoU. Together with the UK and Canada Export Credit Agencies’ indicative provision of debt finance for around 70 percent of the Kachi project’s capital requirements, this provides a framework of support for Lake’s TARGET 100 Programme, which has the goal of producing annually 100,000 tonnes of high purity lithium chemical to market by 2030,” he said.
For further information please visit: https://lakeresources.com.au/
