Lake Resources announces job cuts to further reduce costs

Australia’s lithium developer Lake Resources on Monday said it would reduce global headcount by nearly 50% across its non-core operational and administrative workforce as it implements further cost-saving measures.

Furthermore, Lake will continue to evaluate the monetization of non-core assets and lithium tenements unrelated to its lithium developer’s flagship Kachi project in Argentina, in a bid to further reduce expenses.

This comes at a time when signs have shown that the lithium market has been stabilizing after falling around 70% over the past year as EV sales growth slowed.

The company estimates further 30% reduction in expenditures in the quarter ending June 2024, compared to the previous quarter, in which it saw expenditures reduced by 40%.

The lithium developer is also in middle of selecting a strategic partner for its operating entity of the Kachi project.

“Company is now actively conducting outreach to a wide array of potential strategic partners as it progresses the initial phase of the strategic partner selection process,” Lake Resources said in a statement.

Lake Resources expects the partner selection process to conclude in the second half of 2024, it added.

(By Ayushman Ojha; Editing by Mark Porter and Diane Craft)