Lake Resources doubles output target for Argentine lithium project

Adds detail, background

Jan 19 (Reuters) - Australia's Lake Resources NL LKE.AX said on Wednesday planned production at its flagship Kachi Lithium Brine project in Argentina will be set at 50,000 tonnes per year of lithium carbonate, nearly double its previous estimate.

The company had earlier set the base case target for a definitive feasibility study, which serves as a basis for raising funds, at 25,500 tonnes.

It raised the target on potential positive drilling results, increasing demand from prospective offtake partners, funding interest from UK and Canadian credit agencies and favourable policies of the Argentine government, among others, Lake said in a statement.

"We are well placed given quality resource, leading technology and key finance partnerships to ensure an optimal set of offtake agreements that align with these expansion plans," Lake Chairman Stu Crow said.

Lithium prices soared last year as automakers around the world began investing billions of dollars to transition to cleaner modes of transportation amid a global push to cut carbon emissions.

Last year, the New South Wales based lithium explorer teamed up with California-based clean technology firm Lilac Solutions to jointly develop the Kachi project, with Lilac set to invest about $50 million in the project's development.

(Reporting by Sameer Manekar in Bengaluru; Editing by Sriraj Kalluvila and Vinay Dwivedi)

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