Lake Resources (ASX: LKE) shares have been bouncing around from gains of 4.0% to losses of 2.5% on Friday.
In late afternoon trade, shares in the beaten down All Ordinaries Index (ASX: XAO) lithium stock are trading for 3.8 cents apiece, right back where they were at yesterday's close.
That flat performance is a fair bit better than the All Ords today, with the index down 1.1% at this same time.
Here's what's happening with Lake Resources shares.
Lake Resources shares eyeing cost reductions
With lithium prices having crashed some 85% from their highs and remaining depressed in 2024, Lake Resources has joined many of the other miners in cutting costs.
Among the cost-cutting measures intended to keep the company afloat until lithium prices recover, the company announced in March that it was cutting its global headcount by some 50%.
But there could be more cost savings ahead, without the need for further staff reductions.
In an announcement released this morning that could offer some longer-term tailwinds for Lake Resources shares, the miner said it could realise cost savings of up to 50% on Direct Lithium Extraction (DLE) equipment construction expenses at its flagship Kachi lithium project in Argentina.
This comes after Lake's Kachi project partner, Lilac Solutions, released its fourth-generation ion exchange technology and technical white paper.
The white paper indicates that Lilac has improved long-term lithium recovery to more than 90% on salar brines and reduced core extraction equipment costs by up to 50%. Lake said this could result in total cost savings of up to 25% across the DLE technology package.
The improved technology will also result in 10% lower reagent consumption, which will help control project operating costs.
Commenting on the tech improvement that could help support Lake Resources shares, CEO David Dickson said:
The technology advancements and cost savings announced by Lilac are significant. Improvements in the technology in addition to an increase in the brine lithium grade could result in a reduction in overall project capital of up to 10% for the Kachi Project.
The miner will now evaluate the impact of the new data on its project cost estimates, reported on 19 December in the Kachi Phase One Definitive Feasibility Study.
"Lake was pleased to be part of the field demonstration of Lilac's technology and these cost savings are another welcome development. We look forward to continuing our work with Lilac at Kachi," Dickson said.
Lilac CEO Raef Sully added:
Lilac is excited about the cost savings and operational efficiencies our latest generation ion exchange technology brings. This advancement not only enhances lithium extraction efficiency but also boosts the sustainability and economic viability of lithium production.
Stung by the collapse in lithium prices, Lake Resources shares are down 85% since this time last year.
