Anson Resources Signs Offtake Agreement with LG Energy Solution for Lithium from Paradox Basin

Anson Resources (ASX: ASN) has finalised negotiations with LG Energy Solution – one of the world’s largest battery makers – for the supply of lithium carbonate from its Paradox Basin project in southern Utah.

The definitive offtake agreement is for the supply of up to 4,000 dry metric tonnes per annum of battery-grade lithium carbonate under an initial five-year term commencing in January 2028.

The contract represents approximately 40% of the project’s 10ktpa start-up production capacity.

Diversified Customer Base

Anson regards LG as an ideal partner due to its diversified customer base and strong investment in expanding North American lithium production.

LG Energy has eight facilities currently operating or under construction in North America, including standalone facilities in Michigan and Arizona, as well as five joint venture facilities with major automakers.

Anson chief executive officer Bruce Richardson said the offtake agreement establishes a foundation for a long-term partnership with LG Energy Solution and is an essential part of the critical path for debt funding at the final investment decision stage.

“Anson recognised the unstoppable paradigm shift in the US supply chain for EV battery materials and the key role that Korean battery manufacturers are playing,” Mr Richardson said.

“This shift in manufacturing investment has led to an increased demand for lithium produced in the US, not only to shorten supply chains geographically but also increase US content.”

Lithium Brine Test Work

Anson is currently undertaking exploration and test work of the lithium brine that exists across multiple areas in the Paradox formation.

If successful, this work will support the company’s theory that Paradox Basin brines contain one of the largest lithium resources in North America.

Earlier this year, Anson entered into a non-binding memorandum of understanding with South Korea’s POSCO Holdings to collaborate on the construction of a demonstration plant to test direct lithium extraction technology at the Green River project, also in Utah.

Posco has indicated it will make an investment decision on the demonstration plant at Green River following the due diligence and internal review it expects to complete by the end of the current year.