Ioneer Ltd (ASX: INR, Nasdaq: IONR) (Ioneer) announced the closing of a $996 million loan from the U.S. Department of Energy (DOE) Loan Programs Office (LPO) under the Advanced Technology Vehicles Manufacturing (ATVM) program to support the development of an on-site processing facility at the Rhyolite Ridge Lithium-Boron Project in Esmeralda County, Nevada.
The investment, part of the LPO’s efforts to strengthen the nation’s critical mineral supply chain, will create hundreds of rural jobs, support American manufacturers and help rebalance the global supply of lithium and boron production and processing currently dominated by China and Turkey, respectively. The $996 million loan ($968 million principal and $28 million in capitalised interest) is a $268 million increase in loan principal from the January 2023 conditional loan commitment.
Once operational, Rhyolite Ridge will quadruple the nation’s current domestic lithium supply, power an estimated 370,000 electric vehicles per year, create an estimated 500 jobs during construction and 350 high paying jobs during its decades in operation and become the first new lithium mine in the United States in almost sixty years and first new boron mine in close to a century. The project will generate dual revenue from lithium and boron produced directly at the mine site and contribute to establishing a sustainable lithium loop in Nevada, ensuring the recycling and reuse of the critical minerals.
“The need for domestically sourced and processed lithium and boron has never been greater. The United States requires Rhyolite Ridge and more projects like it if we want secure domestic critical mineral production. It’s as simple as that,” said James Calaway, Executive Chairman of Ioneer. “We’re thrilled to provide these critical battery components to the American manufacturing supply chain.”
“Rhyolite Ridge is fully permitted and construction ready. This loan demonstrates the United States’ confidence in and importance of our lithium-boron mine project. Rhyolite Ridge will not only create new jobs in Nevada but foster innovation across the country,” said Bernard Rowe, Managing Director, Ioneer. “Today’s announcement is the culmination of a rigorous and yearslong process with our federal, state, local and Tribal partners. Ioneer looks forward to bringing these urgently needed materials to market and is proud to set the new standard for modern mining operations and community engagement.”
Due to the deposit’s unique hard rock minerology, Ioneer will limit its operational footprint by avoiding the use of evaporation ponds and eliminate half of all water use compared to brine operations of similar size. The project will curtail its carbon footprint as its steam-powered facility will operate independently from the Nevada energy grid. The state-of-the-art processing facility will recycle half of all the water used. Its on-site location will reduce the need to transport materials across oceans, saving time and reducing costs, and kickstart wholistic supply chain investment in mineral production and processing in the United States.
The loan marks the conclusion of eight years of focused work across environmental, permitting, geology, and engineering. Ioneer engaged with DOE LPO for more than three years and transaction timing was primarily driven by receipt of a positive Record of Decision from the Department of Interior, which Ioneer received in October 2024.
Conditions precedent to first loan funding include closing Sibanye-Stillwater Joint Venture (JV), securing necessary additional required funding and a project finance model bring down.
Next Steps
- Finalise updated resource/reserve and financial estimates
- Close conditional Sibanye-Stillwater JV agreement to fund $490 million for a 50% share of the Rhyolite Ridge Project
- Procure and close additional required funding (50:50 basis with JV partner)
- Make a “Final Investment Decision”
- Construction targeted for later in 2025 and is expected to take approximately 36 months including procurement of long-lead items
- First Production targeted for 2028
Transaction Advisers
Ioneer’s financial adviser is Goldman Sachs, and its legal adviser is Vinson & Elkins.
