Anson Resources buoyed by President Biden’s policy favouring EVs
Link copied to
Special Report: Anson Resources with its US-based lithium project is in a strong position to benefit from President Joe Biden’s promotion of EVs as the transportation of the future.
Battery metals producer Anson Resources (ASX:ASN) is developing its Paradox Basin Brine project for a range of battery chemicals including, boron and iodine in the US state of Utah.
The Paradox Basin Brine project is advantageously located near Tesla’s Gigafactories in Nevada and in Texas.
Initial testing of Anson’s lithium carbonate samples by battery technology company Novonix (ASX:NVX)indicates matching with commercial reference lithium carbonate batteries used in EVs.
“We are encouraged by the recent policy changes in the US supporting the growing global shift toward electric vehicles,” chairman and chief executive, Bruce Richardson, said.
The move is expected to accelerate early market trends toward the adoption of EVs powered by lithium-ion batteries in the US.
Anson Resources is undertaking a review of its entire battery metals portfolio with a view to maximising commercial opportunities for its production portfolio that includes exposure to other battery metals including, cobalt, graphite, nickel and vanadium.
The test work in the review is expected to take around four to five months to complete.
Anson Resources has appointed Millcreek Mining Group to carry out a preliminary economic assessment of the Paradox project to include a proposed lithium production plant.
An earlier PEA study showed the project had a net present value of $US416m for a capital spend of $US121m.
The US President last week signed an executive order stating the US Federal Government will buy only zero-carbon emission vehicles as part of Biden’s $US2 trillion Plan for Climate Change and Environmental Justice.
“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,” he said.
The US federal government operates a fleet of 645,000 vehicles, and in 2019 only a small fraction of this total was electric powered, about 3,200 vehicles.
There is also a push to install more than 500,000 EV charging stations across the US.
Following President Biden’s EV pledge, calls have been made for a similar pledge to be made by the Australian Government for its 10,000-strong vehicle fleet and to replace this with EVs by 2030.
Germany, France, Japan and the UK have each made commitments to phase out diesel and petrol-driven vehicles in favour of EVs between 2025 and 2030.
“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,” Anson’s Bruce Richardson said.
Anson Resources has an additional project, The Bull, in WA located 20 km from Chalice Gold Mines’ (ASX:CHN) high-grade Julimar discovery of nickel, copper and platinum group elements.
This article was developed in collaboration with Anson Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.