Anson Resources (ASX:ASN) has signed a definitive offtake agreement with LG Energy Solution (KRX:373220) for the supply of battery-grade lithium carbonate from its Paradox Basin Lithium Project in the United States.
The deal provides for the supply of up to 4,000 dry metric tonnes per year, over a five-year period, of battery-grade lithium carbonate produced at Paradox, which is expected to begin in 2028. This amount of lithium carbonate represents 40% of the project’s start-up production capacity of 10,000 tonnes per year.
Anson, which has a market capitalisation of $111 million, says the deal will become effective subject to the company starting commercial production and product qualification with LG Energy.
CEO Bruce Richardson says the deal establishes the foundation for a long-term partnership and the company is pleased to supply US-made lithium to LG.
“Anson recognised the unstoppable paradigm shift in the US supply chain for electric vehicle battery materials and energy storage solutions and the key role that Korean battery manufacturers are playing,” Richardson says.
“This shift in manufacturing investment has led to an increased demand for lithium produced in the US, not only to shorten supply chains geographically but also increase US content of electric vehicle batteries and electric vehicles.
“Anson identified this change, targeted its offtake marketing activities to the companies that have made these investments into North American and in particular, the US where Anson development work in the Paradox Basin in Southern Utah is strategically positioned.”
LG Energy Solution has a diversified customer base of original equipment manufacturers and energy storage solutions and has a strong investment in expanding production in North America. The company has eight facilities currently operating or under construction in North America.
Anson Resources is a mineral resources company with a portfolio of mineral projects in key demand-driven commodities. The company’s core assets include the Green River and Paradox Lithium projects in the US.
Write to Aaliyah Rogan at Mining.com.au
Images: Anson Resources
