Ioneer Ltd announced the closing of a $996 million loan from the U.S. Department of Energy’s (DOE) Loan Programs Office under the Advanced Technology Vehicles Manufacturing (ATVM) program. The loan will fund the development of an on-site processing facility at the Rhyolite Ridge Lithium-Boron Project in Esmeralda County, Nevada.
This investment supports efforts to strengthen the United States’ critical mineral supply chain. The project aims to create hundreds of rural jobs, support American manufacturers, and help rebalance the global supply of lithium and boron, which are currently dominated by China and Turkey. 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, the Rhyolite Ridge project is expected to quadruple the nation’s current domestic lithium supply, providing enough lithium to power approximately 370,000 electric vehicles annually. It will create an estimated 500 jobs during construction and 350 high-paying jobs during its decades-long operation. The project will be the first new lithium mine in the U.S. in nearly 60 years and the first new boron mine in almost a century.
The project will generate revenue from both lithium and boron produced directly at the mine site and contribute to establishing a sustainable lithium loop in Nevada, promoting the recycling and reuse of 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 mineralogy, Ioneer plans to limit its operational footprint by avoiding the use of evaporation ponds and reducing water usage by half compared to similar-sized brine operations. The project aims to curtail its carbon footprint by operating a steam-powered facility independent of the Nevada energy grid and recycling half of all water used. The on-site processing will reduce the need to transport materials overseas, saving time and costs, and encouraging investment in domestic mineral production and processing.
The loan marks the culmination of eight years of work in environmental studies, permitting, geology, and engineering. Ioneer engaged with the DOE Loan Programs Office for over three years, with timing primarily driven by receiving a positive Record of Decision from the Department of the Interior in October 2024.
Key terms of the DOE ATVM loan include a total amount of $996 million, comprising $968 million in principal and $28 million in capitalized interest during construction. The loan has a 20-year term with an interest rate fixed at the U.S. Treasury Rate.
Next steps for the project include finalizing updated resource and financial estimates, closing a conditional joint venture agreement with Sibanye-Stillwater to fund $490 million for a 50% share of the project, securing additional required funding equally with the joint venture partner, and making a final investment decision. Construction is targeted to begin later in 2025 and is expected to take approximately 36 months, with first production slated for 2028.
About Ioneer
Ioneer Ltd is an emerging lithium-boron producer and the 100% owner of the Rhyolite Ridge Lithium-Boron Project—the only known lithium-boron deposit in North America and a key component of Nevada’s developing Lithium Loop.
Source: BusinessWire
