An aerial view shows A1 Lithium's Green River lithium project site located within the Utah Inland Port Authority's Castle Country Project Area. The UIPA board has approved a property tax incentive for the company, which plans to expand its lithium extraction project there. (Courtesy Utah Inland Port Authority)
A lithium extraction company is getting a boost from the Utah Inland Port Authority as it develops a project in Green River.
The UIPA board has approved a property tax differential rebate for AI Lithium Inc. in the Castle Country Project Area. Its project there is expected to result in a company investment of about $569 million on 148 acres of private industrial land. The project is expected to create approximately 511 construction jobs and 138 permanent positions, including 117 jobs in Green River.
The project's first phase is designed to produce approximately 10,000 metric tons of battery-grade lithium carbonate annually. Lithium is a mineral used in electric vehicles, energy storage systems, electronics, defense applications and other advanced technologies.
"We are marking a major milestone in establishing a reliable domestic lithium supply right here in Utah," said Bruce Richardson, president of A1 Lithium Inc., the U.S. subsidiary of Australian company Anson Resources. "The support from UIPA will accelerate our investment in Green River, strengthening America's critical mineral independence while delivering hundreds of good-paying jobs and long-term economic growth to rural Utah.
"The Green River Lithium Project is unique when compared to other projects in the USA and overseas. It has low production cost and requires lower capital investment to get into production. We are very grateful for the level of support we have received from UIPA and other Utah government agencies, as well as from the people of Green River that all want to see this project be successful."
The project, in the Paradox Basin area, will use a closed-loop system to draw liquid brine from deep underground wells to extract and purify lithium, which the company says will significantly reduce its carbon footprint and require dramatically less water than other methods. The basin's geology limits environmental impacts as the brine is under significant natural pressure, meaning that diesel-fueled pumps are not required to bring the brine to the surface or for reinjecting the recycled water. The company contends that the process is an improvement over traditional lithium extraction methods, which involve hard-rock mining and evaporation pools and have been criticized for their carbon intensity, chemical use and vast amounts of water consumption.
The company says the Paradox Basin is potentially the largest brine resource in the country and consists of various formations which host large volumes of brines rich in lithium and bromine, among other minerals.
"This 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," said Ben Hart, UIPA's executive director. "It builds on the region's history, infrastructure and skilled workforce while opening the door to an entirely new industry for eastern Utah."
The UIPA board approved an annual property tax differential rebate equal to 50 percent of the tax differential received by UIPA from the project for up to 25 years, subject to a total cap of about $194 million. The post-performance incentive will begin only after project completion and will remain available contingent upon continued operation within the Castle Country Project Area.
The project involved UIPA, the Utah Governor's Office of Economic Development, Green River City and the Economic Development Corporation of Utah.
"The Green River Lithium Project will strengthen Utah and the nation's critical-minerals supply chain while creating high-paying jobs and new opportunities in rural Utah," said Jefferson Moss, GOED commissioner.
"This is a major step forward, not only for A1 Lithium, but also for Green River and rural Utah," said David Wilson, director of planning and enforcement with Green River City. "This project brings real investment, good-paying jobs and long-term economic opportunities to our community while putting Green River at the center of strengthening America's domestic supply of critical minerals. We're excited to see this investment move forward and what it can mean for Green River for years to come."
