Commercial Prospects Lifts Lake Resources Share Price (ASX:LKE)

The share price of lithium explorer Lake Resources NL [ASX:LKE] has continued it march upwards, with the company announcing positive results for high-performance lithium-ion batteries.

LKE shares came close to setting a fresh 52-week high earlier today, falling just a cent short.

Currently the LKE share price is 7.79% higher and trading at 41.5 cents per share.

ASX LKE share price chart

Source: TradingView

Shares in LKE exploded mid-January thanks to a strong resurgence in the lithium price.

Positive quarterly results and an oversubscribed institutional share placement also helped drive up the share price in late January.

Lake Resources product is Tier 1

LKE, which bills itself as a ‘clean lithium developer’ confirmed positive results from initial testing by battery researcher Novonix Ltd [ASX:NVX] today.

NVX received commercial samples from Tier 1 battery makers along with samples of LKE’s 99.97%-pure lithium carbonate, to conduct direct comparison of LKE’s product into lithium-ion batteries and its suitability for the nickel cathode sector.

Results showed that LKE’s product yielded improved capacity retention and better electrochemical behaviour in coin cells compared to the commercially available product from Tier 1 producers.

Managing director Steve Promnitz commented:

The results from Novonix demonstrate the high quality of Lake’s high purity lithium in batteries and future results are anticipated to reinforce the initial results. This provides electric vehicle makers and battery makers confidence around Lake’s product quality, which is particularly important given the increasing demand for a high purity product.

Lake is advancing the Kachi DFS [definitive feasibility study] amid a growing focus on sustainability and the need for a responsibly sourced product suitable for the supply chains of leading EV makers. With investor and industry engagement intensifying, Lake is in an excellent position to progress our product and unlock increased value for shareholders.

What comes next for the LKE share price?

When we last covered the LKE share price here on Money Morning, the explorer had just announced that drilling was underway as part of their DFS.

That was in late January and results are still outstanding.

LKE has also just completed an oversubscribed intuitional share placement, raising $20.6 million which will fund their Kachi Lithium Brine Project through to the construction phase in 2022.

Completion, of course, will be dependent on the DFS.

Taking that into account, I anticipate the next news stream we see from LKE will be related to their DFS.

20,000 litres of Kachi brines were shipped to California for further testing early January.

Which, LKE say that data will be a key part of the DFS.

But for now, we’ll just have to play the waiting game, with the results of this study likely to dictate what LKE does next.

As such, if you’re looking for more immediate lithium investments, Lake Resources may not be right for you. Instead, we recommend you check out our latest report on the sector. Including three of our favourite lithium stock picks for 2021.

Grab your copy of this report, right here.

 

Regards, 

Lachlann Tierney,

For Money Morning


Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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