Australian lithium developer Lake Resources has initiated a series of cost reduction measures, including layoffs across non-core positions.

The company is laying off around 50% of its non-core operational and administrative jobs globally.

Additionally, it is streamlining other general and administrative expenses.

The latest decision follows a previous announcement of an estimated 40% cut in expenses for the quarter ending 31 March 2024, compared with the quarter ending 31 December 2023.

These measures are expected to result in around an additional 30% decrease in expenditures in the quarter ending 30 June 2024, compared with the quarter ending 31 March 2024.

This move comes after the completion of the Phase One DFS for the company’s flagship Kachi project in Argentina.

The company aims to extend its financial runway and enhance its position for choosing a strategic partner.

It has confirmed that the Environmental Impact Assessment submission, scheduled for 31 March 2024, and the strategic partner selection process will not be affected.

Additionally, the company is exploring the monetisation of non-core assets and lithium tenements that are not related to the Kachi Project.

Kachi Project CEO David Dickson said: “Despite the current backdrop of depressed short-term lithium pricing, we remain very enthusiastic about the Kachi Project, and its potential to deliver long-term value.

“We are committed to taking all necessary actions to preserve our financial flexibility while we execute a thorough and prudent strategic partner selection process that results in the best outcome for Lake and its shareholders.

“We are focused on delivering the Kachi Project in 2028, which is forecast to align with the start of a prolonged period of structural deficit for battery-grade lithium chemicals.”