The Lake Resources N.L. (ASX: LKE) share price has climbed nearly 3% year to date, but can it keep going higher?
Lake shares are rising 1.54% today and are currently fetching 82.3 cents. For perspective, the S&P/ASX 200 (ASX: XJO) has climbed 0.13% today.
Let's take a look at the outlook for Lake Resources in 2023.
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Lithium exploration and extraction progress
Lake Resources is a lithium developer working to extract high purity lithium from the Kachi Project in Argentina. Lake Resources is also developing three other lithium brine projects in Argentina.
Any progress on lithium extraction at the company's projects could provide a boost for Lake Resources shares in 2023.
Lake shares leapt higher on 10 January on news of important milestone achievements at the Kachi project. Lake's direct lithium extraction technology partner Lilic has managed to operate the lithium processing demonstration plant for 1,000 hours, producing 40,000 litres of lithium chloride. This will be shipped to Saltworks for conversion to lithium carbonate.
In other recent news, the mineral resource estimate at the Kachi project has now doubled to 2.2 million tonnes of measured and indicated lithium carbonate equivalent. The inferred resource has now lifted to 3.1 million tonnes.
Lake has now expanded its operating team to oversee the next stage of development of the Kachi project. The company is planning to complete a definitive feasibility study on the processing plant by mid-2023.
Lake has a business plan to produce 50,000 tonnes per year of lithium carbonate. The company plans to complete a "rigorous evaluation" of project timelines, estimated capital costs and report in the second quarter of 2023.
News on a final investment decision on this project or any further positive news at the demonstration plant could provide Lake Resources with a boost this year. Sales of lithium appear to be still a while away.
Broker coverage
Any positive broker sentiment could provide Lake Resources shares with a boost in 2023. Analysts at Bell Potter have a positive outlook on the Lake Resources share price. Bell Potter has a speculative buy rating on Lake Resources with a $2.52 price target. This implies a mammoth upside of 206%.
On the flip side, Lake Resources has been attracting short interest again lately. Short seller J Capital is continuing to target Lake Resources due to technology and funding concerns, as my Foolish colleague James reported recently.
Lithium prices
Lithium prices and demand sentiment for electric vehicles (EVs) could impact Lake Resources shares in 2023. The lithium price and EV demand tend to weigh on multiple ASX lithium shares each week, including Lake Resources.
The Office of the Chief Economist is tipping spodumene prices to rise from US$2,700 a tonne on average in 2022 to US$4010 in 2023.
However, Goldman Sachs has a more bearish outlook on lithium prices. Goldman is tipping lithium hydroxide to fall from US$76,650 a tonne to US$58,650 a tonne in 2023.
Looking at electric vehicle demand, EY Global has recently predicted EV sales in the US, China and Europe to "outstrip" all other engine sales by 2030.
Meanwhile, a survey conducted by money.com.au has recently found 42% of Australians will buy an EV as their next car purchase.
Lake Resources share price snapshot
The Lake Resources share price has slid nearly 13% in the last year.
Lake Resources has a market capitalisation of about $1.1 billion based on the current share price.
