Lake Resources (ASX:LKE) outlined progress on its Kachi lithium brine project in Argentina and reviewed recent macro developments affecting lithium markets and the country’s investment climate during an OTC Markets Precious Metals and Critical Minerals Conference presentation led by Managing Director and CEO David Dickson.
Kachi project overview and resource update
Dickson said Lake Resources is an Australian-listed company formed in 2016–2017 that is focused on developing lithium assets in Argentina, with Kachi in Catamarca province as its main development. He described the project as closer to a “specialty chemicals project” than a traditional mining project, emphasizing the processing aspect of extracting lithium from brine.
Dickson also highlighted changes to brine grade assumptions. He said recent work put average lithium content at 249 milligrams per liter, while further results since the definitive feasibility study (DFS) update showed a higher average concentration of about 268 milligrams per liter. He said the higher grade could provide benefits to capital and operating costs as the project advances.
DFS update: capital cost, operating cost, and economics
Dickson said Lake published an initial DFS in late 2023 and updated it in August following further exploration and engineering work. The DFS update used a lithium price assumption of $20,500 per ton. He noted that lithium prices had traded as low as about $8,000 per ton in November, but more recently lithium carbonate had been trading around $20,000–$21,000 per ton, putting spot levels closer to the DFS assumption.
He reported key metrics from the updated DFS for the 25,000-ton-per-year phase:
- Capital expenditure (CapEx): $1.16 billion
- Operating expenditure (OpEx): just under $5,900 per ton
- NPV: $1.5 billion
- Return: 22.5%
On costs, Dickson said power accounts for more than 55% of operating costs, and the company is studying alternatives and hybrid solutions to reduce that portion. He added that the project is already “very competitive” at the current cost levels, with additional potential upside from the higher demonstrated brine concentration compared to the DFS design basis.
Technology partner Lilac and DLE progress
Dickson said Lake has worked with Lilac, a direct lithium extraction (DLE) company based in Oakland, California, using an ion-exchange approach. He emphasized that ion exchange is not new science, describing it as applying an established method to lithium extraction from brines.
He said Lake and Lilac operated a demonstration plant at Kachi using Kachi brines during 2022 and through 2023, which he described as successful. Dickson added that Lilac has continued improving its technology and announced its “Gen 5” DLE in the second half of last year, including improvements in media productivity, lifecycle, and recovery rate.
Dickson also said Lilac completed construction of a commercial-scale ion bead manufacturing facility in Nevada capable of supplying beads for production up to 100,000 tons per year of lithium carbonate. He noted Lake’s planned output is 25,000 tons per year. Additionally, he cited Lilac’s announcement of an offtake agreement with Traxys related to Lilac’s planned 5,000-ton lithium plant at the Great Salt Lake in the U.S.
Permitting, environmental process, and power strategy
On near-term execution, Dickson said Lake is focused on final permitting and power supply. He said the company submitted its environmental impact assessment (EIA) application in March 2024 and is targeting final approval in the first half of 2026 from the Catamarca government.
He described a “major milestone” in December: approval of Ramsar site zonification as part of the EIA process, aimed at protecting wetlands around the project area, including Laguna Carachi Pampa. Dickson said this was an important permitting step and signaled constructive engagement with provincial authorities.
Because Kachi is in a remote region with no current grid power, Dickson said Lake has been working with YPF Luz, the power company of Argentina’s YPF. He said YPF Luz completed a front-end engineering design (FEED) study last year, which was incorporated into the DFS update to support a grid power solution and estimate its cost. He added that Lake continues to evaluate options to optimize power given its outsized impact on operating costs.
Argentina outlook, lithium market volatility, and cash position
Dickson discussed Argentina’s evolving political and economic backdrop, pointing to reforms under President Javier Milei since taking office in late 2023. He cited midterm elections in October 2025 as providing strong support for Milei’s government and added that sovereign risk was at a seven-year low, which he said could help attract international investors.
He also referenced recent U.S.-Argentina discussions on critical minerals, including mentions of a reciprocal trade and investment agreement under discussion, a large U.S. credit line described as the “Financial and Security Corporation,” “Project Vault” related to strategic reserves, and a new initiative called “FORGE,” which he said appeared to be replacing the Minerals Security Partnership. Dickson said he plans to attend “Argentina Week” in New York, where Milei, cabinet members, and governors are expected to meet with stakeholders to discuss agreements and investment.
In Q&A, Dickson said he visited the White House several weeks earlier and that Lake has started dialogue with U.S. government departments about positioning Kachi within emerging critical minerals initiatives, while also engaging with Argentine counterparts. He cautioned it was too early to say whether Kachi would be included, and suggested U.S. actions could spur similar strategic reserve efforts elsewhere.
On lithium markets, Dickson described significant price volatility, citing a rise to $82,000 per ton in December 2023, a decline to $8,000 per ton in 2025, and a more recent rebound above $20,000 per ton. He said many forecasts now cluster around $20,000 per ton or higher and argued supply-demand dynamics have shifted expected deficits forward. He also pointed to battery energy storage systems as a growing contributor to demand.
Finally, Dickson highlighted Lake’s reported cash position from its Appendix 5B filed less than two weeks earlier: cash of AUD 50 million (which he characterized as roughly $10 million) at the end of December, with no debt. He said the company reduced spending by more than 40% in 2025 versus 2024 and remains focused on cost management while advancing permitting, power planning, and discussions with potential offtake and strategic partners ahead of a future final investment decision.
About Lake Resources (ASX:LKE)
Lake Resources NL explores for and develops lithium brine projects in Argentina, Australia, and the United States. The company's flagship project is the Kachi lithium brine project located in Catamarca province, Argentina. It also explores for minerals. Lake Resources NL was incorporated in 1997 and is based in Sydney, Australia.
Further Reading
- Five stocks we like better than Lake Resources
- They’ve Built Major Gold Stories Before – And They’re Doing It Again
- How to collect $500-$800 weekly (BlackRock’s system)
- Nvidia CEO Issues Bold Tesla Call
- Gold’s rally is big — but what comes next could be bigger
- HCTI: Under the Radar and Building an AI Healthcare Empire
