Anson Resources Ltd increases its planned initial production capacity of battery-grade lithium by 275% to 10,000 tonnes

Anson Resources Ltd (ASX:ASN) is working on a major expansion of the planned lithium production capacity of its main asset, the Paradox Lithium project in Utah, USA, now targeting 10,000 tonnes per year of carbonate battery grade lithium.

A Detailed Feasibility Study (DFS) will target new Stage 1 production capacity, which represents a 275% increase from the 2,674 tonnes published in an updated Preliminary Economic Assessment (PEA) in September 2021.

Driven by three factors

This decision is motivated by three factors:

  • Anticipated significant increase in JORC resources to the Paradox project;
  • Growing lithium demand and higher lithium prices; and
  • Improved lithium recoveries and superior performance of Anson’s 99.95% purity lithium carbonate.

The project’s bromine production capacity will be added gradually, to match the expected substantial growth in demand for zinc-bromine batteries for renewable energy storage and other bromine-derived products.

Unique Project Attributes

Substantial developments in the lithium market, combined with the unique attributes of the Paradox project, have enabled Anson to continue its major expansion.

This strategic expansion will be incorporated into DFS, which is being undertaken by global engineering firm Worley.

Anson Executive Chairman Bruce Richardson said, “The decision to increase our proposed Stage 1 lithium carbonate production capacity to 10,000 tonnes per annum will allow Anson shareholders to take advantage of the lithium boom and to further capitalize on the immense potential of Paradox Lithium. Project.

“The project’s location in the United States means that Anson is strategically well-placed to benefit from growing US automaker commitments to electric vehicles and announced investments in the development of battery manufacturing facilities in the United States. “

Increase in prices and demand

This major planned production capacity expansion is driven by:

1. The planned upgrade and increase in JORC resources will be achieved from an ongoing resource expansion program and increased project area;

2. Higher lithium recoveries achieved with Anson’s Direct Lithium Extraction (DLE) testing; 91.5% recovery against 80% previously estimated;

3. Increase of more than 1000% in the price of lithium carbonate in the last 24 months, driven by the expected growth in demand, stemming from the global revolution in electric vehicles (see below);

The graph of lithium carbonate prices against forecast increases the sales of electric vehicles.

4. Rapid expansion of private sector investment in US lithium-ion battery manufacturing facilities (see below) and increased harvesting activity of sustainably produced lithium carbonate;

Pipeline of the US Giga factories relating to the Paradox Lithium project.

5. Superior performance of Anson’s 99.95% purity lithium carbonate over commercially available battery-grade lithium carbonate in lithium-ion battery cells, indicating longer life drums ;

6. US government designation of lithium as a critical mineral, with domestic production in the national interest; and

7. The allocation of approximately US$20 billion in low-interest loans by the US government to support the transition from fossil fuels to an alternative energy economy, including the development of a national supply chain in lithium.

Bromine production plan

Anson will also gradually add bromine production capacity to the Paradox project in accordance with market/customer requirements.

US and global markets are seeing a surge in demand for zinc-bromine batteries, to support power grids and renewable energy storage, and other bromine-derived products.

This includes calcium bromide (CaBr) and sodium bromide (NaBr), which are used in multiple industrial applications.

“We are also excited about the huge potential that exists in the development of zinc-bromine batteries to support power grids and provide energy storage,” Richardson said.

“We are fortunate to have a massive bromine endowment that we can gradually bring into production to meet customer demand for zinc-bromine batteries and other bromine-derived products.”

Progress towards FID

Anson is making great strides toward a Final Investment Decision (FID) on Project Paradox, with the DFS well advanced and multiple resource upgrade and expansion workflows progressing.

The DFS will reflect the updated lithium development strategy.