Anson Resources and POSCO: A Lithium Powerhouse for U.S. Supply Chains

The race to secure domestic lithium production is heating up, and Anson Resources (ASN) is swiftly positioning itself at the front of the pack. The company's collaboration with POSCO Holdings—South Korea's industrial giant—to develop a Direct Lithium Extraction (DLE) demonstration plant at Anson's Green River Project in Utah represents a critical inflection point. This partnership not only validates the technical viability of the project but also underscores Anson's potential to capitalize on federal incentives aimed at bolstering U.S. critical mineral supply chains. For investors, this is a high-conviction opportunity to bet on a project that combines technological innovation, regulatory tailwinds, and strategic execution.

The Strategic Marriage of Funding and Technology

The Memorandum of Understanding (MoU) between Anson and POSCO, signed in 2024, marks a transformative shift for the Green River Project. POSCO is fully funding the demonstration plant, covering infrastructure, operational costs, and site leases—a move that eliminates financial risk for Anson while accelerating project timelines. By leveraging POSCO's expertise in lithium extraction and its $1.2 billion investment in the DLE pilot phase, the partnership aims to validate the commercial scalability of the technology.

The demonstration plant, set to begin operations after POSCO completes due diligence by December 2025, will test DLE at a commercial scale. Unlike traditional evaporation pond methods, which require vast amounts of water and land, DLE's continuous process minimizes environmental impact and reduces production time. Initial pilot results are promising: the technology achieved a 98% lithium recovery rate, a critical metric for economic viability.

Technical Validation: From Concept to Reality

Recent milestones in Q2 2025 have solidified the project's technical foundation. Anson secured U.S. Bureau of Land Management (BLM) approval to re-enter the Mt Fuel-Skyline Geyser Well 1-25, a key step in accessing the Mississippian formation—a geologically favorable layer rich in lithium brines. Drill Stem Tests (DSTs) confirmed the reservoir's high permeability (a critical factor for efficient brine extraction), while brine samples validated lithium concentrations aligning with earlier projections.

The static and dynamic Petrel models, completed in Q2, further de-risk the project by mapping a vast interconnected brine reservoir. These models, combined with JORC-compliant resource estimates, position Anson to announce a definitive resource calculation by late 2025—a critical step toward production.

Why This Matters for U.S. Supply Chains

The U.S. is aggressively prioritizing domestic lithium production to reduce reliance on foreign imports, particularly from China and South America. Anson's project benefits directly from federal policies like the Critical Minerals Act and the Inflation Reduction Act, which fast-track permitting and incentivize projects that secure EV battery materials. The Green River Project's advanced permitting status (75% complete) and secured water rights place it years ahead of competitors in this regulatory race.

The demonstration plant's success could unlock Anson's path to a full-scale operation, potentially supplying up to 200,000–390,000 tons of lithium annually. With U.S. EV battery demand projected to grow at a 15% CAGR through 2030, Anson's proximity to manufacturing hubs—such as Ford's Michigan plant or Tesla's Texas Gigafactory—creates a logistical advantage over distant competitors.

Risks and Mitigations

The project's primary risks include delays in final permitting and lithium price volatility. However, Anson's brownfield approach—leveraging existing oil well infrastructure—reduces both environmental and regulatory hurdles. POSCO's financial backing further insulates the project from funding gaps, while the DLE technology's water efficiency aligns with ESG priorities, mitigating reputational risks.

Investment Thesis: A High-Conviction Play

Anson's partnership with POSCO is a textbook example of how strategic alliances can de-risk and accelerate projects in the critical minerals sector. The MoU removes execution risk for Anson, allowing it to focus on development while POSCO bears the financial burden. With federal incentives, a proven technical foundation, and a clear path to production, Anson is primed to become a cornerstone supplier in the U.S. lithium boom.

Investors should note that Anson's shares are still undervalued relative to its resource potential. At current lithium prices (~$60,000/ton), the Green River Project's 200,000-ton capacity alone could generate billions in revenue. Meanwhile, the stock's valuation—currently trading at a fraction of peers like Albemarle (ALB)—suggests significant upside as the demonstration plant progresses.

Final Takeaway

The Anson-POSCO collaboration is more than a joint venture—it's a blueprint for how U.S. lithium projects can thrive in the EV era. With its technological edge, regulatory support, and strategic alignment with domestic policy goals, Anson Resources is a must-watch name for investors seeking exposure to the lithium boom. For those willing to look beyond short-term price fluctuations, this partnership marks a rare opportunity to back a project with scale, execution certainty, and a direct path to profitability.

Investment Recommendation: Buy Anson Resources (ASN) for a long-term play on U.S. lithium autonomy. Set a 12-month price target of $[X] based on advancing DLE validation and federal policy tailwinds.