Australian lithium developer Lake Resources LKE.AX announced on Monday that it will slash more than 50% of its global headcount, including six members of the company’s executive team. The move is aimed at cutting costs and maximizing the value of the company’s flagship Kachi project in Argentina.
Last week, Lake Resources had said it is laying off staff and selling assets as prices for lithium, a crucial metal in the production of electric vehicle batteries, have fallen. This is due to a combination of Chinese oversupply and concerns that the EV industry is not growing as fast as expected.
Earlier in March, the company had already said it would reduce its global headcount by nearly 50% across its non-core operational and administrative workforce.
In addition to the job cuts, Lake Resources also stated that it is managing an ongoing process for the potential sale of its non-core assets and lithium tenements in the Jujuy and Catamarca provinces of Argentina.
The company expects the cost reductions to lower its consumption through the second half of 2024.