Anson Resources Ltd (ASX:ASN) (FRA:9MY) has accelerated its work on the Paradox Brine Project in Utah, US, following the recent policy developments from the Biden Administration, which are expected to directly benefit Anson and provide multiple opportunities for its extensive suite of battery metals projects.
In addition to the significant progress made with respect to engineering studies underway at Paradox, Anson has decided to accelerate the production of lithium chemicals to Stage 1, following a strategic review and recognition of improving market conditions for lithium.
“Well-positioned” to capitalise on demand for EVs
Anson executive chairman and chief executive officer Bruce Richardson said: “We are encouraged by the recent policy changes in the US supporting the growing global shift towards electric vehicles (EVs).
“A large volume of US Government purchase orders for EVs would drive further significant investment in battery technology and key commodities such as cobalt, lithium, nickel, graphite and vanadium.
“Our portfolio is strongly geared towards the battery metals sector, and we believe we are very well positioned, from both a geographical and commodity perspective, to capitalise on the uptick in demand for EVs globally.”
Initial lithium carbonate testing
Initial results from its commercial battery cell test work with Novonix, indicate that the lithium carbonate produced from Paradox matches closely to that of current lithium carbonate products that are in use in the market.
The test work, which will take four-five months to complete, will assess how Anson’s lithium products perform in a commercial battery cell compared to the performance of other lithium products used by battery manufacturers.
These results will be used as a reference in off-take discussions with potential end-users.
Anson has also appointed Millcreek Mining Group to conduct a revised preliminary economic assessment (PEA) of the Paradox project which will include a lithium production plant based upon the lithium contained in the raw brine feed for the proposed 15,000tpa sodium bromide plant.
Biden Administration’s pledge
Notable recent developments include the Biden Administration’s pledge to transition the US Federal Government’s 645,000-strong vehicle fleet to EVs, combined with his "Buy American" executive order aimed at steering the government to purchase US-made products.
Biden also pledged to build 500,000 EV charging stations in the US during his presidential election campaign.
These landmark pledges effectively signal a paradigm shift to EVs.
Set to become a global trend
The EV policy is expected to quickly filter through to the corporate sector, and set to become a global trend, driving a significant and long-term increase in demand for battery metals.
Following Biden’s pledge, calls have already been made in the Australian Parliament to follow suit and replace the Australian government’s 10,000 vehicles with EVs by 2030.
The UK, Japan, France and Germany have all pledged to ban sales of combustion engine vehicles between 2025 and 2030, providing an immediate boost in demand for battery metal suppliers.
Further, major automotive brands such as Mercedes, Porsche, Audi and Toyota all have electric and hybrid vehicles in production due to tightening global emissions standards.
Reviewing entire project suite
While the US EV policy is set to have a major impact on the battery metals industry, US-based assets are strategically placed to benefit from the “Buy American” executive order which ensures the US government spends taxpayers' money on US-made goods.
Considering the rising demand for the entire suite of battery metals, Anson is thoroughly reviewing its entire project suite and planned work programs to maximise potential opportunities from each project.
It remains well-funded to complete current work programs at both Paradox Brine and The Bull Project in Western Australia.
The company raised a total of $3.75 million since November 2020, following a successful $2.4 million placement in November 2020, and an additional $1.35 million received in January from the exercise of options.
Paradox Brine Project
Paradox Brine Project is located in strategic proximity to Tesla’s Gigafactory facilities in both Nevada (680 miles) and Texas (1000 miles) provides a geographical advantage to meet growing US demand for battery-grade lithium