Ioneer Confident About Rhyolite Ridge FID in Nevada

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--With a draft federal review completed and a successful cash haul, a final investment decision (FID) on the Rhyolite Ridge lithium project in Nevada is expected by December, developer Ioneer Limited (Sydney, Australia) said in a statement.

The Bureau of Land Management (BLM) completed its draft environmental assessment (EIS) and closed the public comment period for the project during the second quarter, an accomplishment that Executive Chairman James Calaway said represented six years of work.

"Rhyolite Ridge will help accelerate the electric vehicle and secondary storage transition and secure a cleaner future for our children and grandchildren," he said. "As we move through the final steps in the federal permitting process, Ioneer will keep working across all aspects of our development to ensure this world-class project is effectively built and will operate efficiently and sustainably."

The company is proposing a $640 million facility in Nevada that would boast net production of 20 million tons of material per day. An on-site production plant would yield more than 20,600 tons per year of lithium carbonate, which could yield enough lithium for 370,000 electric vehicle (EV) batteries. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can learn more from a detailed project report and plant profile.

Ioneer believes Rhyolite Ridge holds about 360 million tons of deposits, including 3.4 million tons of lithium carbon equivalent and 14.1 million tons of boric acid equivalent. Collectively, that estimate is some 145% greater than the previous estimate from 2020.

The entire sector may be facing headwinds, however. The market for lithium is currently oversupplied, putting pressure on prices for concentrate of spodumene, a high-purity lithium ore. Ioneer said prices were down in June alone by some 3% month-on-month to reach $1,136 per ton.

On the other hand, the company pointed to an increase in global sales of EVs as cause for optimism. The company is already committed to supplying materials to Ford Motor Company (NYSE:F) (Detroit, Michigan) to help with EV production across North America.

Market prices for minerals, meanwhile, are expected to bottom out later in the year.

On environmental issues, Ioneer added that it was in compliance with water and pollution regulations in Nevada: "No compliance issues were noted during the quarter, and Ioneer continues to report ongoing monitoring and compliance related activities as required under these obligations."

During the quarter, Ioneer raised $25 million in a share placement that it would use to develop Rhyolite Ridge. The company expects to receive the permits necessary to start construction in October and it will make a final investment decision by December.

Production is expected to begin as early as 2027. Once completed, Ioneer said that Rhyolite Ridge is expected to quadruple current U.S. lithium chemical output.

Rhyolite Ridge is divided between a north and south basin, though the north basin has seen minimal work activity so far.

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