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Anson Resources higher on news that its high-purity lithium could make batteries last longer

Test-work for high-performance lithium-ion batteries using Anson’s high purity lithium carbonate and lithium hydroxide is proving successful.

Anson Resources Ltd - Anson Resources higher on news that its high-purity lithium could make batteries last longer

Anson Resources Ltd (ASX:ASN) has opened higher on receiving positive battery test-work results from NOVONIX Ltd, demonstrating its high-purity lithium makes batteries last longer.

NOVONIX compared cathode powder synthesised using commercial metal hydroxide and lithium precursors to Anson’s lithium product to provide real-world comparisons.

Anson reported that its materials retain more of the available capacity after the first formation cycle, while during ultra-high precision coulometric (UHPC) tests Anson materials clearly showed lower capacity losses.

Shares are higher in early trade, surging up to 37% to A$0.135.

Paradox Brine Project affirmation

Anson chairman and CEO Bruce Richardson said the test-work results demonstrated the viability of the company’s flagship Paradox Brine Project in Utah, from which Anson sources its lithium.

“The lithium carbonate and lithium hydroxide produced from the Paradox brines have the necessary specifications that Tier 1 battery makers may require,” he said.

“In layman terms, the test-work performed on Anson lithium indicates a longer battery life.”

Richardson said the results built on earlier test-work conducted by NOVONIX, which showed that Anson’s 99.9% purity lithium carbonate electrochemical behaviour performance exceeded commercial battery-grade lithium-ion batteries and lithium hydroxide demonstrated similar performance to existing commercial products.

The lithium hydroxide and lithium carbonate samples used in the testing were produced by Anson from brine extracted from Paradox in March 2020 and December 2019.

“The purity of our product provides it with a performance advantage over existing commercial products which is expected to attract lithium-ion producers that are aiming to provide a high-performance product,” he said.

Battery demand

The test-work results will hold Anson in good stead as demand for lithium-ion batteries and environmentally sustainable solutions continues to increase.

Anson’s high-purity lithium carbonate performed better relative to commercially available battery-grade lithium carbonate in lithium-ion battery cells, specifically achieving similar or better first cycle efficiency and lower gas production during formation cycles than reference material, as well as less capacity loss, lower impedance growth and lower voltage drop.

“Demand for such a sustainably produced and responsibly sourced product is growing in North America and Europe as electric vehicle makers look to bolster their environmental credentials,” Richardson said.

“As NOVONIX is a provider of high precision battery testing equipment and advanced R&D services to several Tier 1 battery makers and OEM’s around the world, giving us a platform for global exposure is expected to greatly assist opening discussions with potential offtake partners.”

In the meantime

Anson delivered an updated preliminary economic assessment (PEA) for stage one of Paradox.

The PEA, which is equivalent to a JORC scoping study, evaluates the economics, resources and funding requirements of a producing lithium and bromine asset that could support the burgeoning electric vehicle market in the US.

One of the key wins is inherent in the asset’s reduced sodium bromide operating cost estimates, which decreased 67% to US$377 per tonne with no adjustment to the compound’s sales price.

On the other hand, the cash cost for the production of lithium has reduced by 47% to US$2,431 per tonne, while the PEA’s forecast sales price has risen to US$15,000 per tonne.

- Daniel Paproth

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