Lake Resources is preparing a response to research firm J Capital’s short report as partner, Lilac, defended its lithium extraction technology.
High-flying lithium explorer Lake Resources is set to emerge from a trading halt as soon as Wednesday as its management team scrambles to rebut allegations its direct lithium extraction technology may not work at commercial scale.J Capital cast doubt over the ability of Lake Resources’ partner, Lilac Solutions, to help develop its Kachi lithium brine project in Argentina.
“Lake is wedded to Lilac’s DLE technology to produce lithium in Argentina, despite it being unproven. Lake has not reported cooperation with any other DLE technology suppliers,” J Capital said. According to J Capital, the lifecycle of Lilac’s medium for extracting lithium is “problematically short” which is important as a shorter length adds to costs., J Capital’s claim that its ceramic beads only work for around 100 to 150 cycles is inaccurate, as Lilac’s beads can work for more than 1000 cycles.Lilac has invested $US50 million in Lake in return for 25 per cent of Lake’s equity, based over three performance stages.
While Lake shares were suspended from trading, other ASX-listed lithium stocks witnessed selling pressure on Tuesday. Core Lithium slid 7 per cent, Liontown Resources 5.5 per cent, and Allkem 4.8 per cent. Pilbara Minerals lost just 2.2 per cent.
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