Australia-based Anson Resources Limited has completed negotiations with LG Energy Solution and executed its first binding offtake term sheet to supply battery-grade lithium carbonate from Anson’s Paradox project in the Paradox Basin in southern Utah. The project is held by Anson’s US subsidiary A1 Lithium.
The offtake term sheet calls for Anson to supply up to 4,000 dry metric tonnes per year of battery-grade lithium carbonate produced at the project, which is expected to begin operations in 2027. The associated volumes represent approximately 40% of the project’s start-up production capacity of 10,000 tonnes per year.
Anson is building a significant presence in the US market with continued growth through further investment in developing its projects in the Paradox Basin. Korean and Japanese companies have committed to building large battery manufacturing facilities in the United States and are seeking Inflation Reduction Act (IRA)-compliant lithium to supply those projects.
LG Energy Solution has eight facilities currently operating or under construction in North America, with stand-alone facilities in Michigan and Arizona and six joint venture facilities with major automakers.
The Offtake Term Sheet or subsequent definitive agreement will become effective subject to Anson Resources making a final investment decision, the commencement of commercial production in the Paradox Basin and offtake product qualification with LG Energy Solution. In addition, Anson continues to progress negotiations with other potential tier one global customers which would complement its offtake strategy of 80-90% of initial production under long-term agreements.
The Paradox Basin is a globally significant lithium asset, on which Anson is conducting exploration and test work of the brine known to exist across multiple zones in the Paradox Basin. This work is on-going and if successful will support the company’s theory that the Paradox Basin contains one of the largest lithium resources in North America.