Ioneer Says It's Ready for FID on Rhyolite Ridge

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Lithium mining company Ioneer Limited (Sydney, Australia) said it raised gross proceeds of around $25 million, which the company said means its funded enough to move its Rhyolite Ridge project in Nevada through to a final investment decision (FID).

The company said Monday that it had received firm commitments to raise $25 million through a placement "to institutional, professional and sophisticated investors."

"Ioneer is now well funded to progress the Rhyolite Ridge project through to final investment decision expected in December 2024," the company said.

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 potentially yield enough lithium for 370,000 electric vehicle (EV) batteries.

"Rhyolite Ridge continues to demonstrate it is a world-leading lithium project, helping accelerate the electric vehicle transition and securing a cleaner future for our children and grandchildren," said James Calaway, the company's executive chairman. "This placement represents another step forward towards ensuring this world-class project operates efficiently and sustainably."

Ioneer believes Rhyolite Ridge holds around 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 company already has offtake agreements with South Korean chemicals company EcoPro (Cheongju) and Prime Planet Energy & Solutions (Tokyo, Japan). An agreement with the Ford Motor Company (NYSE:F) (Dearborn, Michigan), meanwhile, supports EV production at Ford's North American assembly plants.

With only one U.S. mining operation for lithium in service, the White House is keen to advance the sector to capitalize on the energy transition. The government last month provided a $2.3 billion conditional loan to Canada-based Lithium Americas Corporation (NYSE:LAC) (Vancouver) to cover the cost of an open-pit mining operation dubbed Thacker Pass, located some 200 miles north of Reno.

Thacker Pass could support the production of some 800,000 EV batteries, making it one of the largest deposits of lithium carbonate in North America, the Department of Energy estimated.

For Rhyolite Ridge, the federal government already published a 2,000-page draft environmental impact statement in early April, putting the project one step closer to reality.

Ioneer expects to get the final permits for construction by October, ahead of the anticipated FID in December. Construction would follow the FID, and 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.

to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the project reports related to Rhyolite Ridge and Thacker Pass.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).