Anson Resources Secures Up to $194 Million in Tax Incentives to Advance Green River Lithium Project

en.Wedoany.com Reported - The Board of the Utah Inland Port Authority (UIPA) has approved commercial incentives of up to $194 million for A1 Lithium, a subsidiary of Anson Resources, to support the development of the Green River Lithium Project. The incentives will be delivered through annual property tax increment rebates after the project becomes operational, with a rebate equal to 50% of the tax increment UIPA receives from the project, for a maximum term of 25 years, contingent upon the project's continued operation within the Castle Country project area.

A1 Lithium plans to build a direct lithium extraction facility on approximately 148 acres of private industrial land in Green River, Utah, with an estimated project investment of approximately $569 million. Phase 1 is designed to produce approximately 10,000 tonnes of battery-grade lithium carbonate per year, with construction expected to create approximately 511 jobs and 138 long-term positions upon commissioning, 117 of which will be located in Green River.

This incentive is not a one-time cash grant, but rather an annual rebate after the project is completed and generates new property taxes. At the maximum amount, the project would receive approximately $8 million per year in rebates upon meeting the agreed conditions. UIPA has also discussed with Anson Resources the possibility of using the incentive to support public infrastructure bonds, with funds potentially used for utility connections required by the project as well as supporting infrastructure such as rail and highways, subject to further approval by local government and UIPA.

Anson Resources is developing the Green River Project through A1 Lithium, utilizing a direct lithium extraction (DLE) route. The company's current plan is for Phase 1 to produce 10,000 tonnes of lithium carbonate per year, and it has secured a letter of intent for $330 million from the Export-Import Bank of the United States; a binding offtake arrangement with LG Energy Solution covers 40% of the project's expected production. The company is currently advancing the final feasibility study, front-end engineering design, EPC contractor selection, and subsequent financing efforts.

The Green River Project is located in the Paradox Basin, Utah. Anson Resources has currently reported combined resources of approximately 1.5 million tonnes of lithium carbonate equivalent across its two Utah lithium projects, Green River and Paradox, with an additional exploration target of approximately 1.1 million tonnes of lithium carbonate equivalent. Phase 1 of the Green River Project plans to utilize local naturally pressurized brine to produce battery-grade lithium carbonate through the DLE process.