Allkem Share Price Soared Amid First Production Milestone

Key Highlights:

• Allkem Limited announced a significant milestone as Stage 2 of the Olaroz Lithium Facility.
• The facility produced wet lithium carbonate cake at the filter presses.
• The Stage 2 project at the Olaroz Lithium Facility has a capacity of producing 25,000 tonnes per year.

Source: Kapitales Research

Allkem Limited (ASX: AKE) announced a significant milestone as Stage 2 of the Olaroz Lithium Facility successfully achieved first production. The facility produced wet lithium carbonate cake at the filter presses, marking a pivotal moment for the company. The Stage 2 project at the Olaroz Lithium Facility has a capacity of producing 25,000 tonnes per year of technical grade lithium carbonate.

Allkem considers Olaroz, which is operated through Sales de Jujuy SA in partnership with Toyota Tsusho Corporation and JEMSE, as a valuable asset. With mechanical completion at 99.5%, the focus now shifts to the commissioning process, gradually increasing production volumes and ensuring product quality over the next 12-18 months.

After the ramp-up period, the combined infrastructure of Olaroz Stage 1 and Stage 2 is projected to have a nameplate capacity of around 42,500 tonnes per year of lithium carbonate, in line with Allkem's growth strategy and dedication to long-term sustainability for its customers and stakeholders.

Martin Perez de Solay, Allkem's Managing Director and CEO, expressed satisfaction with the operational feasibility of the carbonation process. He commended the team's expertise and dedication, emphasizing their focus on completing the commissioning phase and achieving full capacity.

The construction of additional brine wells, evaporation ponds, lime plants, and other essential facilities was part of the Olaroz Stage 2 project.The objective of this expansion is to provide the Naraha lithium hydroxide plant, a recently commissioned joint venture between Allkem and TTC in Japan, with a feedstock of up to 9,500 tonnes per year of technical grade lithium carbonate.

Allkem's achievement of first production at the Olaroz Stage 2 facility has resulted in a notable surge in the company's share price. Investors are optimistic about the growth prospects and the increasing capacity to meet the rising demand for lithium carbonate in the market.

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