Lake Resources to cut more than 50% of global workforce

Reuters | June 30, 2024 | 3:11 pm Battery Metals Australia Latin America Lithium

Canada's export agency expresses interest in Lake Resources' Kachi lithium project

Kachi lithium brine project. Photo by Lake Resources.

Australia’s Lake Resources said on Monday it will slash more than 50% of its global headcount, including six members of the company’s executive team, to cut costs and maximize the value of its flagship Kachi project in Argentina.

Last week, the lithium developer said that it is laying off staff and selling assets as prices for the metal crucial in the production of electric vehicle batteries have fallen, due to Chinese oversupply and concerns that the EV industry is not growing as fast as expected.

Earlier in March, it said it would reduce global headcount by nearly 50% across its non-core operational and administrative workforce.

The company also said that it is managing an ongoing process for the potential sale of its non-core assets and lithium tenements in Jujuy and Catamarca provinces in Argentina.

It added that the cost reductions are expected to reduce consumption through the second half of 2024.

(By Archishma Iyer; Editing by Christian Schmollinger)