2025 SMM South American Lithium Resources Field Trip – Sixth Stop: Lake Resources

In recent years, the significant fluctuations in lithium prices have subjected enterprises across the industry chain to a rollercoaster of experiences. Although lithium prices are no longer as high as they once were, the development prospects of the new energy industry chain remain bright amid the global push for a low-carbon economy, with the importance of lithium resources becoming increasingly prominent.

As one of the regions with the most abundant lithium resources globally, South America, particularly the "Lithium Triangle" (comprising Bolivia, Argentina, and Chile), holds over 55% of the world's proven lithium resources. Consequently, South America's lithium resources play a pivotal role in the global energy transition.

Against this backdrop, SMM organized the 2025 SMM South American Lithium Resources Field Trip. Led by Siyu Chen, the project manager for SMM's overseas South American lithium resources field trips, and Zhicheng Zhou, a senior analyst in new energy and lithium batteries, the delegation visited lithium-related enterprises in South America from May 15 to May 26, 2025. They toured local lithium ore and material enterprises, held discussions with company executives, and explored potential opportunities in lithium ore resource development, technological exchanges, and investment cooperation. On May 19, SMM and the delegation members headed to Lake Resources for in-depth exchanges.

Company Profile

SMM and the delegation members visited Lake Resources. The company's CEO, David Dickson, and Marketing Manager, Bárbara Cozzi, warmly received the delegation and provided a detailed introduction to the company's business development.

Lake Resources NL (ASX: LKE; OTC: LLKKF) is a responsible lithium developer that utilizes state-of-the-art ion exchange extraction technology to produce sustainable, high-purity lithium from its flagship Kachi project, located in the Catamarca Province of Argentina's Lithium Triangle region. Lake also has an early-stage project in the region, namely the Ancasti or Catamarca pegmatite lithium project. The company is confident in the long-term (post-2030) fundamentals of the lithium industry.

The Kachi project produces battery-grade lithium carbonate (>99.5% purity). According to available data, the project boasts a total of 11.1 million tonnes (Mt) of lithium carbonate equivalent (LCE), including 8.2 Mt of measured and indicated resources, 0.6 Mt of ore reserves, and 2.9 Mt of inferred resources. The project has a mine life of 25 years.

In terms of project construction progress, the Kachi Phase I project is designed to have a production capacity of 25,000 mt of lithium carbonate. It is anticipated that a second plant may be constructed in the future, adding an additional 25,000 mt/year of lithium carbonate production capacity, with further expansions possible depending on market conditions.

When discussing the outlook for the future lithium market, Lake Resources stated that the current lithium spot price is unsustainable: it has fallen below $10,000 per tonne—at this spot price, the economics of most lithium-related projects are poor. Additionally, there is ongoing uncertainty regarding long-term lithium prices, with market opinions on future price developments ranging widely, from $15,000/mt to $27,000/mt. Some market forecasts now predict that the global lithium supply deficit will begin in 2029, earlier than the previously forecasted 2030. Argentina and direct lithium extraction (DLE) technology may drive the next wave of growth in lithium production.

It is expected that lithium demand will roughly double over the next five years. According to Goldman Sachs' forecast, the compound annual growth rate (CAGR) of lithium demand will reach approximately 17% from 2025 to 2030. It is anticipated that the lithium market will experience oversupply in the next four to five years, with a supply deficit likely to emerge between 2029 and 2030.

After the visit, SMM and the field trip members took a group photo together with Lake Resources, aiming to strengthen their cooperation and friendship. It is believed that there will be deeper exchanges and cooperation in the future!

Through this field trip and survey, SMM and the field trip members gained a deeper understanding of Lake Resources' development, as well as a more profound knowledge of the market status, development trends, and existing issues in the South American lithium battery industry. They will continue to deepen cooperation with major enterprises to achieve complementary advantages and promote the development of the lithium battery industry.