Anson Resources and POSCO Holdings have sealed a binding deal for a $7.2 million lithium extraction demonstration plant at Green River, advancing the project from concept to operational validation.
- POSCO to fund and operate DLE demonstration plant
- Anson to receive AUD 7.2 million facilitation fee
- Plant aims to validate POSCO’s proprietary lithium extraction tech
- Operations scheduled for 2027–2028 at Green River project
- Potential for expanded commercial collaboration post-demonstration
Binding Agreement Marks Step Change for Green River
Anson Resources (ASX:ASN) has crossed a critical milestone with POSCO Holdings (KRX: 005490, NYSE: PKX) boards signing off on a binding agreement to develop a Direct Lithium Extraction (DLE) demonstration plant at the Green River Lithium Project in Utah. This deal transitions the partnership from a non-binding memorandum to a concrete plan, with POSCO taking full financial and operational responsibility for the plant’s design, construction, and operation.
The demonstration plant, expected to begin operations in 2027 and run through 2028, will test POSCO’s proprietary DLE technology on brines sourced from Anson’s Bosydaba #1 well. POSCO’s commitment includes a substantial AUD 7.2 million (USD 5.2 million) facilitation fee paid to Anson, signaling strong confidence in the project’s lithium potential.
Technical Validation and Strategic Positioning
This facility is designed as a non-commercial pilot to validate continuous industrial-scale lithium extraction from Green River’s brines, a key step in reducing technical risk ahead of potential full-scale production. The collaboration underscores Green River’s growing stature as a pivotal asset in the emerging U.S. battery materials supply chain, a sector gaining strategic attention amid global EV demand.
Bruce Richardson, Anson’s Executive Chairman and CEO, highlighted the deal as a “transformational step” that reflects POSCO’s technical confidence and the increasing importance of domestic lithium supply in the U.S. market. This comes on the heels of Anson’s recent resource upgrade by 650 percent, which has significantly boosted the project’s scale and appeal to partners.
POSCO’s Role and Broader Collaboration Potential
POSCO will fully bear the costs and responsibilities of the demonstration plant, including engineering, maintenance, and operations. Anson’s role is to provide access to the site, infrastructure, and brine supply, facilitating the testing of POSCO’s technology under real-world conditions. The agreement includes defined performance targets for brine supply from the Bosydaba #1 well.
Furthermore, the two companies plan to explore additional commercial opportunities during the plant’s operation, potentially including joint investments in the wider Green River Project. This aligns with POSCO’s broader strategy to expand its lithium production footprint and advance proprietary DLE technologies, complementing its existing lithium investments in South America and South Korea.
Regulatory and Development Momentum at Green River
The timing of this agreement dovetails with Anson’s recent regulatory progress, including the submission of a Small Mining Operations notice for its planned 10,000 tonnes per annum lithium carbonate plant in Utah. This regulatory milestone, paired with the DLE demonstration plant, signals a concerted push towards commercialisation and production readiness at Green River.
POSCO’s validation of DLE technology on Green River brines could accelerate project bankability and attract further investment, especially as the U.S. seeks to secure domestic battery material supply chains. The demonstration plant will provide crucial data on lithium recovery efficiency and operational scalability, factors that remain to be proven at this stage.
Meanwhile, Anson’s engagement in the U.S. defense industrial base consortium and its positive technical ratings for other projects hint at a broader strategy to leverage government and strategic partnerships, potentially enhancing funding avenues for Green River and related assets.
Bottom Line?
The binding agreement with POSCO is a pivotal technical and strategic milestone for Anson, but the commercial viability of the Green River lithium project hinges on successful demonstration outcomes and subsequent investment decisions.
Questions in the middle?
- Will POSCO’s DLE technology meet performance targets at industrial scale?
- Could this demonstration plant pave the way for a full-scale lithium extraction facility?
- How might evolving U.S. battery supply chain policies impact further collaboration?