POSCO to Fully Fund $ Demonstration Plant at Anson’s Green River Lithium Project
Anson Resources has partnered with POSCO Holdings to develop a demonstration plant for Direct Lithium Extraction at the Green River Lithium Project, aiming to validate new technology and boost US lithium supply.
- Non-binding MoU signed between Anson Resources and POSCO Holdings
- POSCO to fully fund and operate a DLE demonstration plant at Green River
- Investment decision expected by December 2025 after due diligence
- Project benefits from low production costs and strategic US location
- Potential for future joint investment contingent on feasibility outcomes
Strategic Partnership for Lithium Innovation
Anson Resources Ltd (ASX, ASN) has taken a significant step forward in its lithium ambitions by signing a non-binding Memorandum of Understanding (MoU) with South Korea’s industrial giant POSCO Holdings. The agreement centers on developing a Direct Lithium Extraction (DLE) demonstration plant at Anson’s Green River Lithium Project in Utah, USA, a site already noted for its low forecast production costs and strategic positioning within the burgeoning North American electric vehicle (EV) battery supply chain.
Validating Next-Generation Extraction Technology
POSCO Holdings, with its extensive experience in lithium extraction and chemicals trading, plans to fully fund the construction and operation of the demonstration plant. This scaled-up facility will test the commercial viability of DLE technology, a method that promises more efficient and environmentally friendly lithium recovery from brine resources. The plant is designed to operate continuously, mimicking the conditions of a future full-scale commercial operation, and aims to produce significant lithium quantities during its testing phase.
Investment and Future Collaboration Prospects
The MoU outlines that POSCO’s final investment decision will follow a thorough due diligence process, expected to conclude by December 2025. Beyond the demonstration plant, both companies are exploring broader partnership opportunities, including potential joint investments in the Green River Project, contingent on positive feasibility outcomes. This collaboration signals a mutual commitment to advancing lithium supply chain security in the US, a critical factor as demand for domestically sourced EV battery materials intensifies.
Industry Implications and Strategic Positioning
Executive Chairman and CEO of Anson, Bruce Richardson, highlighted the MoU as a milestone in de-risking the Green River Project and attracting top-tier partners. POSCO’s involvement not only validates the project’s strategic potential but also aligns with broader industry trends emphasizing low-cost, high-purity lithium production within secure supply chains. For POSCO, this partnership enhances its footprint in North America and supports its ongoing R&D efforts in next-generation lithium extraction technologies.
Looking Ahead
As the global lithium market evolves, the Green River Lithium Project stands out as a promising asset poised to contribute meaningfully to the US’s EV battery materials ecosystem. The success of this demonstration plant could set a precedent for scaling DLE technology, potentially reshaping lithium extraction economics and environmental standards.
Bottom Line?
The coming months will be critical as POSCO’s due diligence and investment decision could unlock a new chapter in US lithium production.
Questions in the middle?
- Will POSCO’s due diligence confirm the commercial viability of the DLE technology at Green River?
- What are the timelines and milestones for scaling from demonstration to full commercial production?
- How might this partnership influence lithium supply dynamics and pricing in the North American market?