Anson Resources (ASX: ASN) has taken a significant step forward in the development of its Green River lithium project in Utah by signing a non-binding memorandum of understanding (MoU) with POSCO Holdings, a leading Korean chemicals giant. The agreement sees POSCO committing to fully fund the construction of a demonstration plant that will test its direct lithium extraction (DLE) technology at the site. This collaboration highlights Anson’s ongoing efforts to commercialise and de-risk its lithium assets amid rising demand for secure, low-cost domestic lithium supplies in the United States.
The Green River project, operated through Anson’s subsidiary Blackstone Minerals, is situated approximately 50 kilometres northwest of Anson’s flagship Paradox lithium project. It benefits from low forecast production costs, existing infrastructure, and access to a skilled local workforce, positioning it as a promising source of lithium carbonate critical for electric vehicle (EV) batteries and energy storage solutions. Anson’s chief executive officer, Bruce Richardson, described the MoU as “a significant milestone” that draws top-tier partners to Green River, reinforcing its status as a globally attractive lithium asset.
POSCO’s involvement is pivotal. The Korean company plans to cover all costs related to infrastructure, operations, and site leasing for the demonstration plant, which will operate continuously at a commercially relevant scale. This plant is intended to validate the industrial scalability of POSCO’s DLE technology before any full-scale construction begins. POSCO, which has invested substantially in the development of next-generation lithium extraction technologies, including geothermal brine, has been reviewing the Green River operations thoroughly and aims to reach an investment decision by December 2025, subject to the completion of its due diligence and positive feasibility outcomes.
POSCO’s backing notably offsets financial risk for Anson while accelerating project development timelines. The company’s DLE technology contrasts with traditional lithium extraction methods such as evaporation ponds, which are more water- and land-intensive and slower. Instead, DLE utilizes a continuous process that significantly reduces environmental impact and enhances lithium recovery – with initial pilot tests achieving recoveries of up to 98%, a figure critical to the economic viability of the project.
In parallel with this partnership, Anson Resources has advanced other operational capabilities at Green River. The company recently received a state-of-the-art Li-Pro™ pilot unit from Koch Technology Solutions, designed to conduct lithium extraction tests on fresh brine from the project. Scheduled to be fully operational by July 2024, this unit will run for several months to generate valuable performance data to inform the scale-up to a commercial plant.
Water access, a crucial factor for lithium brine projects, has also been secured. Anson signed a water rights sub-lease agreement for the Paradox Lithium Project in nearby Utah, approved by local authorities, ensuring sufficient and sustainable water supply for the company’s planned lithium carbonate production.
Anson’s lithium ambitions stretch further with a recent binding offtake term sheet negotiated with LG Energy Solution, a major battery manufacturer. This agreement commits Anson to supply up to 4,000 dry metric tonnes annually of battery-grade lithium carbonate from its Paradox project, representing around 40% of the initial production capacity. The partnership underlines Anson’s commitment to high-quality product delivery while adhering to strong environmental, social, and governance (ESG) standards.
Looking ahead, the MoU between Anson and POSCO not only opens avenues for the demonstration project but also sets the stage for potential joint investment and deeper cooperation should feasibility studies prove favourable. As lithium supply chains tighten globally with increasing EV adoption, Anson’s positioning within the United States, backed by pioneering technology and robust partnerships, could prove pivotal in securing a stable, domestic supply of critical battery materials.
In summary, this strategic alliance with POSCO brings technical expertise and financial muscle to Anson’s Green River lithium project, accelerating its path toward commercial production and positioning it well in the evolving global lithium market. With latest pilot testing underway and a strong commercial framework developing, Anson Resources is advancing steadily towards becoming a key player in providing sustainable lithium, essential for the clean energy transition.
Source: Noah Wire Services
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