Ioneer Ltd (ASX: INR, Nasdaq: IONR) has closed a US$996 million loan from the U.S. Department of Energy (DOE) Loan Programs Office under the Advanced Technology Vehicles Manufacturing (ATVM) program. This funding will support the development of a state-of-the-art on-site processing facility at the Rhyolite Ridge Lithium-Boron Project in Esmeralda County, Nevada.
The loan, an increase from the January 2023 conditional commitment, underscores the project’s strategic importance in strengthening the domestic supply chain for critical minerals.
Project Highlights
- Significant Supply Contribution: Once operational, Rhyolite Ridge will quadruple the U.S. domestic lithium supply and become the first new lithium mine in nearly 60 years and the first new boron mine in close to a century.
- Economic Impact:
- Expected to power 370,000 electric vehicles annually.
- Creation of 500 construction jobs and 350 high-paying operational jobs in rural Nevada.
- Dual Revenue Streams: Lithium and boron production directly at the site will ensure diversified income streams.
Environmental Innovation
Rhyolite Ridge will implement innovative technologies to reduce its environmental footprint:
- Efficient Resource Use:
- The facility will avoid evaporation ponds and reduce water consumption by 50% compared to similar-sized brine operations.
- Half of all water used will be recycled on-site.
- Sustainability Initiatives:
- A steam-powered facility will eliminate dependence on Nevada’s energy grid.
- On-site processing will cut transportation needs, reducing costs and emissions.
Statements from Leadership
James Calaway, Executive Chairman of Ioneer:
“The need for domestically sourced and processed lithium and boron has never been greater. Rhyolite Ridge is critical to ensuring a secure domestic supply chain and contributing to American manufacturing.”
Bernard Rowe, Managing Director of Ioneer:
“This loan demonstrates the United States’ confidence in Rhyolite Ridge. We’re proud to set a new standard for modern mining operations and bring these urgently needed materials to market.”
Key Loan Terms
- Amount: US$996 million (US$968 million principal, US$28 million in capitalized interest).
- Interest Rate: Fixed at the U.S. Treasury rate for the loan’s 20-year term.
- Conditions Precedent:
- Finalizing the Sibanye-Stillwater JV for US$490 million (50% project stake).
- Securing additional funding.
Next Steps
- Finalize updated resource and financial estimates.
- Close the conditional Sibanye-Stillwater Joint Venture and secure required co-funding.
- Target construction commencement in late 2025, with a timeline of approximately 36 months.
- First production targeted for 2028.
Broader Impact
The Rhyolite Ridge project aligns with U.S. government initiatives to reduce reliance on foreign supplies for critical minerals like lithium (dominated by China) and boron (dominated by Turkey). This development is pivotal for building a sustainable and independent domestic supply chain for critical minerals.
