Anson Resources and POSCO Sign Demo Plant Agreement for Direct Lithium Extraction from Green River

Anson Resources (ASX: ASN) has executed a definitive agreement with Korean chemicals company POSCO Holdings for the construction and operation of a proposed direct lithium extraction (DLE) demonstration plant at the Green River project in Utah.

It builds on the non-binding memorandum of understanding (MoU) the companies signed last month, and will see POSCO operate the non-commercial plant to extract lithium from brines produced from the Bosydaba #1 well owned by Anson while evaluating commercialisation pathways for future lithium production.

Under the terms of the deal, POSCO will be responsible for engineering, construction, operation, and maintenance of the facility, while Anson will provide access to property, infrastructure, and brine supply for a facilitation fee of $7.2 million.

The plant is expected to commence operations in 2027, with POSCO’s validation of lithium extraction at continuous industrial scale is scheduled for completion in 2028.

During this period, the companies will continue to explore potential business co-operation opportunities including joint investment in the Green River project.

Scaled-Up Pilot Plant

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, while generating significant quantities of product.

Anson believes the plant proposal constitutes strong industry validation of Green River’s low-cost lithium potential.

The company expects it to position Green River as a key participant in the emerging US domestic battery materials supply chain and accelerate technical de-risking through continuous demonstration-scale testing.

Strong Technical Confidence

Anson executive chair Bruce Richardson said the definitive agreement represented a “transformational step forward” for the Green River project.

“Moving from a non-binding MoU to a fully executed agreement underscores the strong technical confidence that POSCO has in our asset and highlights the increasing strategic importance of domestic US lithium supply,” he said.

“In meeting with POSCO’s senior management team during the development of this agreement, it became obvious that we share the same strategic objectives [and] we look forward to working with POSCO in achieving our shared goals.”

POSCO said it belived the Anson collaboration would “contribute to strengthening the North American lithium supply chain.”

“With the approval of the terms for a binding agreement, POSCO will advance validation of DLE technology in the US and evaluate commercialisation pathways for future lithium production.”