Here's why the Lake Resources (ASX:LKE) share price is flowing 6% upstream today

What's driving Lake Resources shares higher on Thursday?

Key points
  • Lake Resources shares accelerate 6.15% to $1.035 
  • The company stated that the demonstration plant has been shipped from California to its flagship, Kachi Lithium Project 
  • Once assembled, the demonstration plant will produce lithium chloride for a period of up to four months 

The Lake Resources N.L. (ASX: LKE) share price is powering ahead today following the company's latest announcement.

At the time of writing, the clean lithium developer's shares are exchanging hands for $1.035 a pop, up 6.15%.

A woman lies back and relaxes in her boat with a big smile on her face as it floats on the rising tide.

Image source: Getty Images

What did Lake Resources announce?

Lake Resources shares are climbing after the company marked its progress on its flagship, Kachi Lithium Project.

According to the release, Lake Resources advised the modular demonstration plant has been dispatched to the Kachi Project in Argentina.

The demonstration plant was designed and built by Lake Resources' technical partner, Lilac Solutions Inc.

The engineering team in California assembled the ion exchange modules and supporting equipment within 12-metre five shipping containers.

Lake Resources noted that the modular design allows for a "plug and play" approach, once brine feed, power and reagents are connected.

Once constructed at the Kachi Project, the demonstration plant will produce lithium chloride (eluate) representing 2.5 tonnes of lithium carbonate. This will then be converted into high-purity battery quality lithium carbonate for potential offtakers and battery qualification later this year.

The demonstration plant is expected to operate between three to four months.

The disruptive lithium processing technology is said to "cut operating costs and boosts lithium recovery from Kachi Project brines".

If the demonstration plant is successful and Lake Resources can secure offtakers, then Kachi could become a significant producer globally.

The company is aiming to bring high purity lithium carbonate to market with a low carbon footprint.

Lake Resources managing director, Steve Promnitz commented:

Both Lake and Lilac are very confident that the demonstration plant incorporating Lilac's proprietary ion exchange process will prove to investors and offtakers that it is scalable and functions well on site by successfully producing a high-quality lithium product.

Lake is well positioned to deliver a major project with consistent high-quality product with substantial ESG benefits.

About the Lake Resources share price

The Lake Resources share price has been one of the best places to invest in the past year, zooming upwards of 170%. While renewed investor sentiment within the battery industry has helped support the share price, the company has been making significant tailwinds.

Based on today's price, Lake Resources commands a market capitalisation of roughly $1.27 billion, with approximately 1.22 billion shares outstanding.

Motley Fool contributor Aaron Teboneras 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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