Why Lake Resources stock price is skyrocketing 19% today

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The Lake NL Resources (ASX:LKE) The stock price spikes higher on Friday amid the release of a market update.

The company reassured the market that the ambitions for its Argentinian projects remain the same following its pivot to the North American market.

At the time of writing, Lake Resources stock price is 83 cents, 18.57% higher than its previous close.

Unfortunately, today’s gain was not enough for the stock to recover from this week’s drop. It is still trading 41% lower than it was at last Friday’s close.

For context, the broader market is also in the green today. The S&P/ASX 200 Index (ASX:XJO) is currently up 0.25% as the Index of all ordinaries (ASX:XAO) gained 0.48%.

Let’s take a closer look at today’s release of the ASX 200 Lithium Explorer.

Lake Resources’ share price jumped on Friday

Lake Resources’ share price suffered this week amid news of its planned transition to the North American and Asian lithium supply chains, its addition to the ASX 200 and a broader lithium selloff.

The company announced Monday that North America general manager Steve Promnitz is stepping down after establishing Lake Resource’s dominant position in Argentina.

It also announced that its chairman, Stu Crow, has been named executive chairman for six months to oversee the establishment of the company’s North American presence. Crow will lead the appointment of a new CEO, board members and the establishment of US offices.

The company today responded to potential concerns about the change to a non-price-sensitive version, saying:

Nothing has changed regarding [Lake Resource’s] desire to advance the development of Kachi and other projects in Argentina to meet growing demand in the United States and other Western markets.

He also noted that Promnitz’s decision to resign was “of his own volition” and said he did not provide a reason for leaving. Negotiations and key events will continue despite Promnitz’s departure.

Finally, the company told the market:

There is an urgent need in the US to secure battery metal supply chains… Crow is currently in the US to advance the strategy outlined.

What’s going on with ASX lithium stocks this week?

Prior to today, Lake Resources’ share price had fallen nearly 54% this week amid a lithium sell-off.

He was joined in the red by the shares of fellow lithium favorites ASX.

those in Core Lithium Ltd (ASX: CXO), Liontown Resources Limited (ASX: LTR), and Sayona Mining Ltd (ASX: SYA) fell 27%, 14% and 14% respectively between the end of last week and Thursday’s close. They are all also in the green today.

As my insane colleague James reported, this week’s sale may have something to do with news that Germany may refuse to ban fossil-fuel cars by 2035.

Lake Resources Stock Price Overview

Including today’s gains, Lake Resources’ share price is nearly 24% lower than it was at the start of 2022. However, it has gained 151% since this time last year. .