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The Lake NL Resources (ASX: LKE) The stock price climbed as much as 8% before giving back much of its gains on Friday.
Within minutes of the market opening, shares of the clean lithium developer hit an intraday high of $1.285. However, as the day progressed, they pulled back and are now trading at $1.22 each, up 2.10%.
Let’s take a look at the news surrounding the company today.
What happened to Lake Resources?
The largest S&P/ASX 300 Metals & Mining Index (ASX:XMM) is also seeing gains today.
The benchmark index representing a number of companies that produce gold, steel and/or precious metals is currently up 1.18%.
Although Lake Resources’ share price may outperform its sector today, it appears investors have taken a breather on the company this week.
Shares of Lake Resources have gained 94% over the past month, but ended the last three sessions before today in the red.
However, a positive development is to provide support to the whole sector.
As reported by The Agethe federal government is looking at ways to remove barriers that could lead automakers to supply more electric vehicles to Australia.
Volkswagen Australia chief executive Paul Sansom was “struggling to convince his parent company to supply more vehicles under the existing scheme”, according to the report.
Climate Change and Energy Minister Chris Bowen will discuss fuel efficiency standards at a national electric vehicle summit on Friday.
He will talk about how “existing fuel efficiency standards limit the freedom of choice in the marketplace as they create a barrier to the wider adoption of vehicles that do not require petrol or diesel” .
Lake Resources has an ambitious goal of developing a production capacity of 100,000 tons of lithium carbonate per year by 2030.
If Australia revises current energy efficiency standards, it could bode well for the lithium industry.
This would mean that consumers would have better access to popular new models of electric vehicles.
As part of its attempt to achieve this production target, Lake Resources today announced the appointment of Sean Miller, an experienced mining company business manager, to the new position of business development manager. Its objective will be to accelerate development activities at Lake’s three brine projects in the province of Jujuy in Argentina.
Lake Resources Stock Price Overview
After hitting a year-to-date low of 58.5 cents on July 15, Lake Resources’ stock price soared 105% higher.
Based on today’s price, Lake Resources presides over a market capitalization of approximately $1.76 billion.