Anson Resources and POSCO Holdings have inked a binding agreement for POSCO to design and operate a $7.2 million Direct Lithium Extraction demonstration plant at the Green River Lithium Project in Utah, aiming to validate proprietary lithium extraction technology and strengthen U.S. battery supply chains.
- POSCO to fund and operate DLE demonstration plant at Green River
- Anson to receive AUD 7.2 million facilitation fee
- Demonstration plant targets commercial validation of POSCO’s lithium extraction tech
- Operations expected to run from 2027 through 2028
- Potential for expanded commercial collaboration post-demonstration
Binding Agreement Accelerates Green River Lithium Development
Anson Resources (ASX:ASN) has taken a significant stride forward in commercialising its Green River Lithium Project in Utah by signing a binding agreement with South Korea’s POSCO Holdings (KRX: 005490, NYSE: PKX). Under the deal, POSCO will fully fund, design, construct, and operate a proprietary Direct Lithium Extraction (DLE) demonstration plant at Green River, paying Anson a facilitation fee of around AUD 7.2 million (USD 5.2 million).
This arrangement marks a transition from the non-binding memorandum of understanding announced last year, reflecting POSCO’s growing technical confidence in Anson’s lithium brine assets and the strategic importance of securing domestic U.S. lithium supply amid global EV battery demand.
Demonstration Plant to Validate Proprietary Extraction Technology
The demonstration plant will process lithium-rich brines sourced from Anson’s Bosydaba #1 well, with POSCO responsible for all engineering, construction, operation, and maintenance costs. The facility is designed to validate POSCO’s proprietary DLE technology at continuous industrial scale, a critical step in de-risking the project’s technical and commercial viability.
Operations are slated to commence in 2027 and continue through to the end of 2028. The plant’s success could pave the way for POSCO and Anson to explore further joint investment and commercial collaboration opportunities, potentially accelerating Green River’s path to production.
Strategic Validation of Green River’s Low-Cost Lithium Potential
For Anson, this deal represents strong industry validation of Green River’s low-cost lithium potential and its emerging role in the U.S. battery materials supply chain. Executive Chairman and CEO Bruce Richardson highlighted the alignment of strategic objectives between the two companies, underscoring the importance of domestic lithium supply in a rapidly evolving market.
POSCO’s involvement brings not only capital but also expertise, given its extensive lithium production investments across South America and Asia and its focus on advancing low-carbon lithium technologies. This partnership could position Green River as a key supplier in North America’s push for supply chain security and sustainability.
Financial and Operational Details of the Agreement
The agreement specifies POSCO will bear all costs associated with the demonstration plant’s design, construction, operation, and maintenance, with Anson providing access to property, infrastructure, and brine supply. The facilitation fee of USD 5.2 million will compensate Anson for these contributions.
The term of the agreement extends through December 2028, aligning with the demonstration plant’s operational timeline. Performance targets tied to brine supply from the Bosydaba #1 well are also defined, setting measurable benchmarks for the project’s success.
Bottom Line?
The POSCO-Anson deal signals a pivotal step in validating lithium extraction technology at Green River, but the path from demonstration to commercial production will require close attention to technical outcomes and evolving market dynamics.
Questions in the middle?
- Will the demonstration plant validate POSCO’s DLE technology sufficiently to trigger further investment?
- How might evolving U.S. battery supply chain policies impact the commercialisation timeline?
- What are the potential risks if technical or operational challenges arise during demonstration?