POSCO and Anson Resources Team Up for Utah DLE Lithium Plant

South Korean industrial giant POSCO (PKX) and Australian critical minerals company Anson Resources have announced a partnership to develop a direct lithium extraction (DLE) demonstration plant in Utah, marking a significant push by both companies into domestic U.S. lithium production at a time when supply chain security is a top priority for American policymakers and automakers alike.

Direct lithium extraction is widely regarded as a faster, more environmentally efficient alternative to conventional evaporation-pond lithium recovery. Unlike traditional methods that can take years and consume vast amounts of water, DLE technology draws lithium-rich brine through selective filtration systems and returns spent brine to the source, potentially accelerating timelines from resource to battery-grade material.

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The Utah site positions both companies to capitalize on growing U.S. demand for domestically sourced lithium, a critical ingredient in electric vehicle batteries. Federal incentives under the Inflation Reduction Act have intensified interest in building out American critical-mineral supply chains, making partnerships like this one increasingly attractive for foreign firms seeking access to the U.S. market and its manufacturing credits.

For POSCO, which has been aggressively expanding its battery materials business beyond its core steelmaking operations, the collaboration with Anson represents another step in its global lithium strategy. Anson Resources holds the Paradox Lithium Project in Utah, giving the joint effort an established resource base from which to run the demonstration phase and potentially scale toward commercial production.

The demonstration plant phase will be critical in proving DLE's commercial viability at this particular brine deposit, with results expected to shape decisions on larger capital investment. Continue reading at Yahoo Finance.