Anson Resources Ltd (ASX:ASN) will accelerate engineering works for its flagship Paradox Lithium-Bromine Project in Utah, USA, as the lithium market continues to heat up.
The exploration and development company has appointed leading global engineering solutions firm Worley to draw up a detailed feasibility study that considers a lithium production plant.
Ultimately, the study will bring together a final cost estimate for the lithium hub, which will help Anson move to the final design and construction phases at Paradox.
Worley’s study should finalise in the second quarter of 2022.
“Very exciting time for Anson”
Commenting on the acceleration, Anson executive chairman and CEO Bruce Richardson said: “Anson is very pleased to work with Worley on the engineering for its planned lithium plant at a time when demand for lithium is strong as reflected in healthy prices.
“Worley provides a strong in-country team in the USA, coupled with global expertise in the development of lithium projects.
“The commencement of the detailed feasibility study follows extensive test-work and the production of EV battery-grade products utilising the direct lithium extraction process.
“This is a very exciting time for Anson with drilling of two production wells and the re-entry of two existing wells expected to commence in early 2022 and the robust long-term outlook for lithium carbonate based on global acceleration towards decarbonisation, electrification of vehicles and energy storage.”
Drilling program
As it gears up for the feasibility study, Anson has also received permits to drill two new production wells and enter two historical wells at the Paradox Lithium Project.
Data from these drilling programs will inform an updated JORC resource estimate for the asset, which will underpin its production capacity.
The campaign will run concurrently with the feasibility study, bringing Anson one step closer to adding a working lithium hub to its portfolio.
Where will market go beyond 2022?
As battery and electric vehicle demand continues to firm up, the world is looking to the lithium sources of the future.
By 2030, the total global demand for lithium is expected to reach 1.79 million tonnes of lithium carbonate equivalent.
But while demand continues to soar, supply remains constricted.
Commodities analyst Fastmarkets believes the underlying market fundamentals for lithium are straightforward.
“Increasing and sustained demand will strain supply through 2030,” according to the firm.
“Between now and 2025, supplies from current and planned projects are expected to come online to meet demand; and from 2025 to 2030 new supply sources must come online to support demand.
“Looking ahead to 2030, rapidly growing demand will test the market’s ability to expand supply and reduce lead times.
“But we believe the market will ultimately respond, and demand will calibrate to available supply.”
As Anson continues to develop a lithium-brine project on Tesla Inc (NASDAQ:TSLA)’s doorstep, it stands to become one of the players in the evolving lithium industry.