Boosting Domestic Lithium Production: A Major Milestone Achieved
The US Department of Energy’s Loan Programs Office (LPO) has granted a substantial $996 million loan to Ioneer, a significant step forward in the development of the Rhyolite Ridge Lithium-Boron project in Nevada. This funding will support the creation of an on-site processing facility, marking a crucial move towards increasing domestic lithium production and reducing reliance on foreign suppliers.
A Game-Changer for the Industry
The Rhyolite Ridge project is expected to have a profound impact on the industry, creating hundreds of jobs in rural areas and supporting US manufacturers. By increasing domestic lithium production, the project will help rebalance the global supply chain, which is currently dominated by China and Turkey. Ioneer’s executive chair, James Calaway, emphasized the importance of securing domestic critical mineral production, stating that the need for domestically sourced and processed lithium and boron has never been greater.
Project Details and Benefits
Once operational, the Rhyolite Ridge project is expected to increase the country’s current domestic lithium supply fourfold, enough to power an estimated 370,000 electric vehicles annually. The project will create approximately 500 jobs during construction and 350 high-paying jobs during its operation. Notably, it will become the first new lithium mine in the US in nearly 60 years and the first new boron mine in almost a century.
Sustainable Practices and Community Engagement
Ioneer is committed to minimizing its operational footprint by avoiding evaporation ponds and reducing water use by half compared to similar brine operations. The facility will be steam-powered, operating independently from the Nevada energy grid, and will recycle half of all water used. By locating the facility on-site, the need for transporting materials across oceans will be minimized, reducing costs and kickstarting holistic supply chain investment in US mineral production and processing.
Next Steps and Partnerships
The loan concludes eight years of focused work across environmental, permitting, geology, and engineering. Ioneer engaged with the DOE LPO for over three years, with the transaction timing primarily driven by receiving a positive Record of Decision from the Department of Interior in October 2024. The next steps include finalizing the updated resource/reserve and financial estimates. The conditional Sibanye-Stillwater joint venture agreement will be closed to fund $490m for a 50% share of the Rhyolite Ridge project.
A New Era for Modern Mining Operations
Ioneer’s managing director, Bernard Rowe, expressed pride in setting a new standard for modern mining operations and community engagement. The Rhyolite Ridge project is a testament to the company’s commitment to innovation and sustainability. With the support of the DOE LPO, Ioneer is poised to make a significant impact on the industry and contribute to a more sustainable future.
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