Lake Resources shares hit by short seller’s lithium tech allegations

July 11 (Reuters) – Quick vendor J Funds Exploration on Monday alleged that Lake Assets NL’s (LKE.AX) plan to develop lithium in Argentina is centered on a system from Lilac Answers Inc that probable does not function, the latest assault in opposition to a wave of new technologies aiming to develop the electric powered car battery steel.

Shares of Lake, which are traded in Australia, fell 6.3% on Monday after J Capital’s reportoutlined numerous alleged missteps by Lake’s administration and claimedthat technology created by Lilac is also costly to run and employs as well significantly freshwater.

Privately-held Lilac is among the most-distinguished developers of so-known as direct lithium extraction (DLE) technologies aiming to extract the battery metal from brine working with a selection of machines, however none have worked at business scale. browse more (Total story)

“Lake has hitched its cart to Lilac’s yet-to-be-established technological innovation,” J Capital Analysis claimed in the 17-web page report. “Traders nevertheless have no evidence that the Lilac DLE technologies will work at scale, and if so, at what charge.”

Lilac signed a offer with Lake final September to acquire the Kachi lithium challenge in Argentina, part of a strategy to evolve from a know-how company to a lithium producer. read a lot more .

In April, Ford Motor Co (F.N) signed a preliminary lithium provide offer with Lake. go through much more (Entire story)

Associates for Lake could not straight away be arrived at for remark. J Money declined to disclose the size of its brief situation.

Lilac’s technological know-how works by using ceramic beads to draw in lithium in batch cycles, akin to a laundry device, soon after which a h2o-and-acid mixture is used to clean off the metal.

J Money alleges in the report that the beads only operate for 150 cycles, generating Lake’s job uneconomical.

Lilac Chief Executive Dave Snydacker said that figure is “factually inaccurate” and that his company has examined the beads at far more than 1,000 cycles.

“I do not know exactly where they received that amount from. Possibly they are guessing,” Snydacker instructed Reuters, incorporating his enterprise expects to supply a pilot plant to Lake’s Kachi web page by the conclude of the thirty day period.

“We have a significant degree of self esteem that our plant will be profitable due to the fact we’ve supported the style with so a great deal test get the job done.”

Reporting by Ernest Scheyder
Editing by Marguerita Choy

Our Benchmarks: The Thomson Reuters Trust Rules.