Lake Resources (ASX:LKE) share price jumps 19%, charges to an all-time high

Lake Resources is in the right place at the right time.

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The Lake Resources N.L. (ASX: LKE) share price is breaking out on Wednesday, at one point surging 19.5% to a fresh all-time high of 76.5 cents. It has since softened, currently up 11.72% to 71.5 cents.

What’s driving the Lake Resources share price?

The Lake Resources share price is moving on no price-sensitive news. However, there is no shortage of bullish news from the broader lithium sector.

The battery-grade lithium carbonate price hit a fresh all-time high of 190,000 yuan/metric tonne (mt) last week. That surpasses its previous high of 160,000 yuan/mt at the end of September.

Earlier this month, the International Monetary Fund (IMF) released its world economic outlook report. The report cites lithium (and cobalt) as “probably the most promising rising metals”.

In the IEA’s [International Energy Agency] Net Zero by 2050 emissions scenario, total consumption of lithium and cobalt rises by a factor of more than six, driven by clean energy demand.

Prices [of critical metals] would reach historical peaks for an unprecedented, sustained period under the Net Zero by 2050 emissions scenario. The prices of cobalt, lithium, and nickel would rise several hundred percent from 2020 levels.

How is Lake Resources positioned to benefit?

Lake Resources is an emerging lithium producer, operating out of Argentina. The company aims to leverage direct extraction technology to produce a high purity lithium with significant ESG (environmental, social and corporate governance) benefits.

Its flagship Kachi Project hosts one of the top 10 largest brine resources globally, according to the 22 September presentation.

Furthermore, the company is targeting 25,500 tonnes per annum of lithium carbonate equivalent (LCE) by 2024.

Lake Resources has received offers from a number of potential financial partners including a formal letter of interest from Canada’s export credit agency, Export Development Canada (EDC), and a partnership with its technology partner, Lilac Solutions.

Lake Resources is in the right place at the right time. It is nearing the end of exploration and positioned to supply the world with highly sought after lithium.

As such, the Lake Resources share price has boomed 793% year to date, and is closing in on a $1 billion market capitalisation.

Should you invest $1,000 in Lake Resources right now?

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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