Anson Resources and Posco to join forces on development of Green River lithium project

Anson Resources (ASX: ASN) has signed a non-binding memorandum of understanding (MoU) with leading Korean chemicals company Posco Holdings to construct a demonstration plant at the Green River lithium project in Utah.

Owned by subsidiary Blackstone Minerals and located 50 kilometres north-west of the Anson’s flagship Paradox lithium project, Green River’s advantages include low forecast production costs, ready access to existing infrastructure and a skilled local workforce.

Posco has initiated a review of Anson’s Green River operations and plans to fully fund construction of the demonstration plant to test its direct lithium extraction (DLE) technology at the project.

‘Significant milestone’

“This MoU with Posco Holdings represents another significant milestone in our commercialisation strategy and underscores the progress Anson has made in de-risking the Green River lithium project,” chief executive officer Bruce Richardson said.

“The project’s ongoing progress continues to attract additional top-tier partners who are contributing to the establishment of Green River as a globally attractive asset.”

Posco has indicated it will make an investment decision on the demonstration plant at Green River following the finalisation of the due diligence and internal review it expects to complete by December 2025.

“As the global supply chain for lithium shifts toward secure domestic sources, Anson is uniquely positioned to support this demand from within the US, offering low-cost, high-purity lithium production,” Mr Richardson added.

Joint investment potential

The two companies will also explore potential business cooperation opportunities including joint investment in the project, contingent on positive feasibility outcomes.

The proposed demonstration plant will be a scaled-up version of a pilot plant to validate a new industrial process at a larger, commercially relevant scale before full-scale construction.

It will operate on a continuous process basis to closely resemble that of the anticipated future commercial plant, as well as generate significant quantities of product.

Posco has been conducting long-term R&D and investment reviews for several years on next-generation lithium resources such as geothermal brine.