Anson Locks in 4,000 Tonnes Per Year Lithium Supply Starting 2028

Strategic Partnership with LG Energy Solution

Anson Resources has formalized a pivotal agreement with LG Energy Solution, a global leader in lithium-ion battery manufacturing, to supply battery-grade lithium carbonate from its wholly owned Paradox Basin project in Utah. The definitive offtake agreement, expected to commence in 2028, commits LG Energy Solution to purchase 4,000 dry metric tonnes annually, representing approximately 40% of the project's initial production capacity.

Market Validation and Production Milestones

This agreement not only validates the quality and strategic importance of Anson’s lithium resource but also serves as a critical milestone supporting the company’s path to commercial production. The Paradox Basin is positioned to become one of the largest lithium resources in North America, and this partnership underscores the growing demand for domestically sourced lithium amid shifting supply chain dynamics in the electric vehicle and energy storage sectors.

Pricing and Contract Terms

Pricing under the agreement is formula-based, referencing prevailing market prices for battery-grade lithium carbonate, which provides a degree of revenue predictability while allowing for market fluctuations. The initial contract term spans five years with an option to extend for an additional five years, offering potential long-term stability for both parties.

Broader Industry Implications

LG Energy Solution’s extensive North American footprint, including facilities in Michigan and Arizona, aligns well with Anson’s US-based production, reflecting a broader industry trend toward localized supply chains to meet increasing electric vehicle battery demand. The agreement also plays a key role in Anson’s financing strategy, particularly as it advances toward final investment decisions and debt funding.

Looking Ahead

Beyond the offtake, discussions are underway regarding a potential investment by LG Energy Solution into Anson Resources, which could further cement the partnership and provide additional capital support. As Anson progresses with exploration, brine testing, and project development, this agreement positions the company favorably within the competitive lithium market.