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.
This 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. This $996 million loan ($968 million principal and $28 million in capitalized interest) is a $268 million increase in loan principal from the January 2023 conditional loan commitment.
After 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 US in almost 60 years and first new boron mine in close to a century. This 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.
Due to the deposit’s unique hard rock mineralogy, Ioneer will limit the operational footprint by avoiding evaporation ponds and eliminate half of all water use compared to brine operations of similar size. And the project will curtail its carbon footprint as its steam-powered facility will operate independently from the Nevada energy grid. The processing facility will recycle half of all the water used. Its on-site location will reduce the need to transport materials across oceans, save time and reduce costs, and kickstart holistic supply chain investment in mineral production and processing in the US.
This 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. The transaction timing was primarily driven by the receipt of a positive Record of Decision from the Department of Interior, which Ioneer received in October 2024.
The conditions precedent to first loan funding includes closing the Sibanye-Stillwater Joint Venture (JV), securing additional funding, and a project finance model down.
Ioneer’s financial adviser is Goldman Sachs, and its legal adviser is Vinson & Elkins.
KEY QUOTES:
“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. We’re thrilled to provide these critical battery components to the American manufacturing supply chain.”
- James Calaway, Executive Chairman of Ioneer
“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. 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.”
- Bernard Rowe, Managing Director, Ioneer
