Lake Resources share price shoots 16% higher on lithium deal with Ford

Lake shares are shooting higher after signing a lithium deal with Ford…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Lake Resources shares are racing higher after announcing a new offtake agreement
  • This is the second agreement in the space of two weeks, both for 25,000 tonnes per annum of lithium carbonate
  • Today's deal is with car giant Ford

The Lake Resources N.L. (ASX: LKE) share price has started the week in a very positive fashion.

In morning trade, the lithium developer's shares jumped as much as 16% to $2.16.

The Lake Resources share price has pulled back a touch since then but remains up 10% to $2.05 at the time of writing.

A man takes his dividend and leaps for joy.

Image source: Getty Images

Why is the Lake Resources share price shooting higher?

Investors have been bidding the Lake Resources share price higher today after the lithium developer announced its second major new offtake agreement in as many weeks.

Hot on the heels of its agreement with Japan's Hanwa for 25,000 tonnes per annum (tpa) of lithium carbonate, which was announced on 29 March, this morning Lake revealed that it has signed an agreement with car giant Ford Motor Company.

As with the Hanwa deal, this memorandum of understanding (MoU) will see Lake provide Ford with 25,000 tpa of lithium from the Kachi Project in Argentina.

Lake's Managing Director, Steve Promnitz, commented: "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 said. 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."

The Lake Resources share price is now up approximately 90% in 2022.

Motley Fool contributor James Mickleboro 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.

More on Resources Shares

A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.
Resources Shares

Capricorn Metals expands Golden Range Project with Piastri acquisition

Capricorn Metals boosts its Western Australian footprint by acquiring the Piastri Project, expanding gold and antimony exploration potential.

Read more »

A hand holding a lump of rare earths material against a blue sky.
Resources Shares

Brazilian Rare Earths unveils Rocha da Rocha scoping study

Brazilian Rare Earths shares are in focus after a landmark scoping study forecast world-leading economics for its Rocha da Rocha…

Read more »

Miner standing in front of trucks and smiling, symbolising a rising share price.
Resources Shares

If I invest $10,000 in Fortescue shares, how much passive income will I receive in 2027?

The dividend outlook for this major miner might surprise you.

Read more »

Woman with gold nuggets on her hand.
Resources Shares

Wia Gold completes $125m placement to fund Kokoseb Gold Project

Wia Gold completes $125 million placement to fully fund the Kokoseb Gold Project following resource growth and feasibility success.

Read more »

Red buy button on an Apple keyboard with a finger on it.
Broker Notes

Up 73%! 3 reasons I'd still buy Mineral Resources shares today

A leading expert forecasts more outperformance from Mineral Resources' surging shares.

Read more »

Pile of copper pipes.
Resources Shares

This ASX mining stock could jump in value by more than 300%: Broker

A new acquisition ticks the right boxes.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Resources Shares

Medallion Metals announces Macmahon as preferred contractor for Ravensthorpe Gold Project

Medallion Metals names Macmahon as preferred mining contractor for its Ravensthorpe Gold Project, unlocking contract cost savings and project momentum.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

St George Mining reports major Araxá resource upgrade

St George Mining share price is in focus after a major upgrade to its Araxá rare earths and niobium resource…

Read more »