This property is the site of a planned lithium extraction project that has received incentives from both the Governor’s Office of Economic Development and the Utah Inland Port Authority. A1 Lithium says the project will ultimately create 138 high-paying jobs in Emery County. (Courtesy Utah Inland Port Authority)
A lithium extraction project in the Green River area is getting a second financial helping hand.
A1 Lithium Inc., a wholly owned subsidiary of Australian-listed Anson Resources, was recently approved for a tax credit incentive by the Governor’s Office of Economic Development board as it continues a more than $714 million project that is expected to create 138 high-paying jobs over the next 25 years.
The state incentive, in the form of a tax credit of up to $212.5 million over 20 years, follows the Utah Inland Port Authority’s approval of a property tax differential rebate for the project.
“Apart from the advantageous geological conditions of the Green River Lithium Project, A1 Lithium decided to invest in Utah due to the high-level support for the development of critical mineral projects to meet the strategic objective of re-establishing supply chains in the USA,” said Bruce Richardson, president of Anson Resources, in a news release.
“Utah’s transparent mining policies and aim of making quick application determinations were also a factor in this decision. We have received an unprecedented level of support from GOED and UIPA as well as other government of Utah agencies, for which we express our appreciation. We are excited to proceed with this project that we expect will bring about a generational change in the economy and livelihood of the people of Green River and southeastern Utah.”
The company has said the project’s first phase is designed to produce approximately 10,000 metric tons of battery-grade lithium carbonate annually for electric vehicles and energy storage.
Over the next 20 years, the project is projected to create new total wages of more than $494.3 million and generate $425 million in state tax revenue. The incentivized jobs are expected to pay an average of $179,087.
“Developing domestic supply chains for critical minerals is a key focus of both state and national energy infrastructure strategies,” GOED Commissioner Jefferson Moss said in a prepared statement. “The Green River Lithium project in Emery County marks a significant advancement for rural economic growth in Utah. It establishes a sustainable and long-term industrial base, creating well-paying jobs in rural areas and strengthening Utah’s role in producing energy materials domestically.”
“A1 Lithium’s investment in southeastern Utah will be transformational for the city of Green River, Utah’s production of critical minerals, and our nation’s broader reindustrialization efforts,” said Ryan Starks, executive director of the Economic Development Corporation of Utah. “EDCUtah is proud to support A1 Lithium as they grow and expand, and our network looks forward to continuing to support the company as they invest in the region and create long-term opportunities.”
The approval on Sept. 3 from the UIPA board entails an annual property tax differential rebate equal to 50 percent for up to 25 years, subject to a total cap of about $194 million. The new A1 plant will be in UIPA’s Castle Country Project Area.
“UIPA is helping Green River translate private investment into long-term economic capacity,” said Ben Hart, UIPA executive director. “This post-performance incentive aligns A1 Lithium’s growth with regional priorities and ties public support directly to actual investment and job creation.”
In an EDCUtah news release, Hart said the project “has the potential to create generational economic opportunity in Green River while strengthening a supply chain that is increasingly important to our national economy and security. It builds on the region’s history, infrastructure and skilled workforce while opening the door to an entirely new industry for eastern Utah.”
The project will be on 148 acres of private industrial land in the Paradox Basin area, which the company has said is potentially the largest brine resource in the country and consists of various formations that host large volumes of brines rich in lithium and bromine, among other minerals. A1 will use a closed-loop system to draw liquid brine from deep underground wells to extract and purify lithium.
During the GOED board meeting, Richardson said the first phase of the project would involve about 10 acres. He listed several ways the company has addressed concerns about water and environmental issues common at other lithium extraction projects.
For example, the company will use resin to extract lithium from brine and use water instead of acids in the extraction process. Because of geological pressures in the Paradox Basin, pumps will not be necessary and the project will not use evaporation pools common in other extraction projects. Ninety-five percent of the water used by the company will be recycled, chemical use will be avoided whenever possible, and the project will produce no emissions other than dust from trucks or people driving their vehicles on the site, he said.
“All that means is we have a very low environmental impact,” Richardson told the GOED board.
Plus, the ultimate use of the product is in batteries for electric cars, which aim to reduce CO2 emissions, he added.
Jade Powell, deputy director of the Southeastern Regional Development Agency (SERDA), expressed support for the project.
“As you know, in our part of the state, we’re energy producers, and we like these types of projects that deal with mining and extraction and creating high-paying jobs, and that’s exactly what this project does,” he told the GOED board.
“So, we’re extremely grateful that they are able to make it work and use their technology here in Green River and boosting the economy not just in Green River, but also regionally throughout Emery, Carbon and Grand counties, as that’s kind of the proximity of it all.”
Founded in 2009, Anson Resources Ltd. is focused on critical minerals and exploration. It focuses on developing sustainable lithium-producing operations in Utah, as well as bromine, uranium and base metals projects in the U.S. and Australia.
GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with GOEO, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.
