Anson Nets AUD 3.85 Million First Payment from POSCO for Lithium Demo Plant
Anson Resources has secured the initial tranche of a AUD 7.2 million facilitation fee from POSCO, advancing the Green River Lithium Project’s Direct Lithium Extraction demonstration plant in Utah.
- Received AUD 3.85 million first tranche from POSCO
- POSCO to fund design, construction, and operation of DLE plant
- Definitive Engineering Study on track for January 2027 completion
- Project financing strategy aims to limit shareholder dilution
- Preparatory works underway at Green River site
POSCO Advances Green River Lithium Demonstration Plant
Anson Resources (ASX:ASN) has banked the first tranche payment of approximately AUD 3.85 million (USD 2.7 million) from South Korean industrial giant POSCO Holdings (KRX: 005490, NYSE: PKX). This payment is part of a binding agreement for a Direct Lithium Extraction (DLE) demonstration plant at Anson’s Green River Lithium Project in Utah’s Paradox Basin.
The total facilitation fee agreed with POSCO stands at around AUD 7.2 million (USD 5.2 million), with POSCO assuming full financial responsibility for the design, construction, operation, and maintenance of the demonstration plant. Preparatory civil works have already commenced, including utility connections and site setup on a 4,135 m² area designated for the plant and associated facilities.
Engineering Study and Project Development Progress
The funds from POSCO will help Anson push forward the Definitive Engineering Study (DFS), expected to be completed by January 2027. This study is a critical step toward finalising project funding and follows the recent achievement of major government permits for the Green River site, positioning the project closer to a Final Investment Decision.
Anson is pursuing a financing strategy that prioritises non-dilutive funding sources such as government grants, strategic investments, and offtake agreements with pre-payment options. The company has applied for Department of Energy funding programs as part of this approach, aiming to minimise equity and loan dilution for existing shareholders.
Potential for Expanded Collaboration with POSCO
Beyond the current demonstration plant agreement, Anson and POSCO are exploring broader cooperation opportunities, including joint investment in the Green River project. Discussions on the form of future collaboration are expected to advance alongside the demonstration plant’s test work, scheduled to run through 2027 and conclude in 2028.
POSCO’s involvement brings significant industrial expertise and global lithium supply chain integration, complementing Anson’s resource development efforts. The Korean group has substantial lithium production interests in Argentina and South Korea and is advancing proprietary DLE technologies to accelerate low-carbon lithium extraction.
Strategic Positioning Ahead of Financing Milestones
Anson’s recent moves, including securing permits for a 10,000 tonne per annum lithium carbonate plant and advancing the DFS with engineering partners Sedgman and Baker Hughes, align with this collaboration. The company’s land expansion efforts around Green River also aim to boost its resource base ahead of the DFS completion and funding finalisation in early 2027.
With POSCO leading the demonstration plant at its own cost, Anson can focus on progressing its broader project development and financing strategy, which remains heavily reliant on non-dilutive funding sources to preserve shareholder value.
Bottom Line?
Anson’s receipt of the first POSCO payment marks a tangible step forward, but the project’s success hinges on the DFS outcomes and evolving financing deals over the next 18 months.
Questions in the middle?
- Will the Definitive Engineering Study confirm the project’s economic viability to attract further investment?
- How might the scope of cooperation with POSCO evolve beyond the demonstration plant phase?
- What non-dilutive funding sources will Anson secure to underpin the Green River Lithium Project’s final investment decision?
