Lake Resources rips higher after lithium supply deal with Ford (NYSE:F)

Lake Assets (OTCQB:LLKKF) surges 9% after Ford Motor (NYSE:F) mentioned on Monday it signed a non-binding deal to buy lithium from the Australian-based firm, within the first time Ford has publicly introduced the place it can procure the battery metallic.

Ford mentioned it goals to offtake 25K metric tons/12 months of lithium from Lake’s Kachi challenge in northern Argentina close to the Chilean border, which is being developed with privately held extraction startup Lilac Options; the proposed operation is anticipated to value about $540M and open by 2024.

The Kachi challenge would use direct lithium extraction, a comparatively new know-how that filters the metallic from brines and makes use of far much less acreage than open-pit mines and evaporation ponds.

Citing excessive vulnerability to the continuing chip scarcity, Barclays lately downgraded its score on Ford to Equal Weight from Obese.