Little known company known as Lake Resources (LLKKF) has been spiking up hard on rumors of Tesla (TSLA) partnership over the past few months (70%). The equivalent to ASX:LKE, which is being heavily discussed on the ASX.
Lake Resources is a ‘Green’ Lithium miner. In fact, it’s one of a handful in the world and is dual-listed on the ASX (The Australian Stock Exchange).
On September 15th, Lake Resources released a very interesting document, collaborating with Novonix (ASX: NVX), who are well-known to be very strongly affiliated with Tesla through renowned lithium-ion battery innovator Jeff Dahn (who has been working with Tesla since 2016), with many of NVX’s employees emanating from Dahn’s Laboratory and being previous Tesla Employees.
Lake Resources has taken another big step in its strategy to deliver ‘clean’ lithium to the growing global green energy push by appointing leading battery technology and materials company Novonix to produce high-performance lithium-ion battery test cells.
Well-respected Nova Scotia, Canada-based Novonix Battery Technology Solutions will use Lake’s high-quality lithium carbonate samples together with commercial battery cathode precursor materials to produce NMC622-based lithium-ion battery test cells.
Data from the battery technology and materials company will allow potential users and offtakers of Lake’s high purity, responsibly sourced product to make direct comparisons of its performance.
In the document, they state:
“Clean Lithium Producer Lake Resources NL announced today further progress towards the development of sustainable, high-purity lithium, following confirmation that Hazen Research, and independent assay laboratory, is well advanced in producing initial larger samples of battery quality lithium carbonate.”
“Under the agreement with Novonix Limited (ASX:NVX), lithium carbonate samples provided by Lake will be used together with commercial battery cathode precursor materials to form an NMC622 cathode and battery”. Novonix is currently developing ‘million mile’ battery technologies with revolutionary anode and cathode materials.”
Lake Resources are planning to supply Lithium resources to Novonix, who are in the process of designing million-mile battery technology (and possess a known affiliation with Tesla). But more importantly, Lake Resources is one of the few Lithium Producers that can acquire ‘green’ lithium through disruptive technology, by using a direct extraction process (ESG), and is one of the handful of companies globally to do so. We also know that Elon has placed heavy emphasis on the demand for an “environmentally friendly” mine.
So what now?
Currently, Contemporary Amperex Technology (CATL), which supplies lithium iron phosphate batteries to Tesla Inc, will pay $6.5 million for its stake in Toronto-based Neo Lithium.
However, let’s compare Neo Lithium to Lake Resources.
Neo Lithium (NTTHF)
- The economic analysis of the PFS is based on average lithium carbonate pricing over the life of mine is ~US$11,882/t
- Battery grade lithium carbonate with 99.599% purity achieved.
- evaporation pond model (non-ESG)
Lake Resources (LLKKF)
- 99.961% purity
- DLE – direct extraction model (ESG)
Neo Lithium is developing evaporation pond operations, and aim to produce 99.5% lithium carbonate, and are located at higher altitude than the Kachi project. High altitudes cause significant power de-rating in fossil fuel generators.
According to the feasibility studies of six lithium developers, recovery rates vary from 52% (Neo Lithium) to 90% (Standard Lithium). The expected recovery rate at Kachi is 83%. Lake Resources is expected to recover a third more of their lithium resource than Neo Lithium will theirs.
There is a big difference in purity… and inconsistently, PFS’s average Lithium Carbonate pricing.
This presents a very powerful opportunity for Lake Resources to provide Lithium to Contemporary Amperex Technology, and by connection Tesla. Furthermore, the company that Lake Resources are collaborating with, in this case Novonix, has known ties with Tesla as mentioned that imminently gives them a direct line to Tesla.
Should you buy Lake Resources (OTC: LLKKF)?
Shares of Lake Resources (LLKKF) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next several months. The majority of the metrics point to this investment being highly attractive.