Lake Resources doubles the production target of Argentina's lithium project

Australia's Lake Resources NL said on Wednesday that its flagship Kachi Lithium Brine project in Argentina planned to produce 50000 tons of lithium carbonate a year, almost double the previous estimate.

The company earlier set a basic target of 25500 tons for the final feasibility study, which is the basis for raising funds.

Lake said in a statement that it had increased targets for potentially positive drilling results, increased demand from potential off-take partners, financing interest from UK and Canadian credit institutions and favourable policies from the Argentine government.

"given high-quality resources, leading technology and key financial partnerships, we are well positioned to ensure the best off-take agreements consistent with these expansion plans," said Stu Crow, chairman of Lake.

Lithium prices soared last year as global carmakers began to invest billions of dollars in the transition to cleaner transportation amid a global push to reduce carbon emissions.

Last year, the New South Wales-based lithium exploration company partnered with California-based clean technology company Lilac Solutions to develop the Kachi project, in which Lilac will invest about $50 million.