Australia's Lake Resources to cut more than 50% of global workforce (updated)

Lake Resources NL

01/07/2024 01:07

(Adds more details in paragraphs 2-5)
       July 1 (Reuters) - Australia's Lake Resources  LKE.AX 
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 maximise 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. 
     
    

 (Reporting by Archishma Iyer in Bengaluru; Editing by Christian
Schmollinger)
 ((Archishma.Iyer@thomsonreuters.com;))