Australian lithium explorer Lake Resources has delayed its Kachi lithium brine project in Argentina by 6 years, and costs are expected to rise by an estimated $956mn.
The Kachi project has been split into two phases of 25,000 t/yr each, Lake Resources said on 19 June. The first phase is expected to be start production by 2027 and reach its nameplate capacity of 25,000 t/yr by 2029. The second phase will begin in 2030 and is expected to reach its nameplate capacity by 2031. The project was previously scheduled to start in 2024 with a lithium carbonate production capacity of 50,000 t/yr.
The split in phases is accompanied by a significant increase in cost. The capital cost for phase one is estimated between A$1.6bn-2.2bn ($1.1bn-1.5bn), an increase of A$1.4bn from the A$799.78mn capital cost reported in 2021.
"Our new, phased approach de-risks project execution while ensuring battery grade lithium carbonate comes to market in a cleaner, efficient way," Lake Resources' chief executive and managing director David Dickson said.
Kachi's indicated and inferred resource has increased from 4.4mn t to 5.92mn t of lithium carbonate equivalent.
The lithium project is located in Argentina's Catamarca province and is Lake Resources' flagship project. It is located in the "lithium triangle", encompassed by the borders of Argentina, Bolivia and Chile. Other major miners in the region include Australia's Allkem and SQM, and US' Albermarle.
Argentina will surpass Chile to become the largest lithium producer in South America by 2035, with an output of 415,000 t/yr, the Chilean Copper Commission said in May.
