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

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

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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.

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.

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