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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Energy (DOE) has announced a conditional loan of $700 million for ioneer Limited's (Sydney, New South Wales) Rhyolite Ridge Lithium-Boron Project in Silverpeak, Nevada, which could be the second operational lithium mine in the U.S. Ioneer has announced three offtake agreements for lithium from the project, and continues to pursue other partners.
In September 2021, ioneer entered a 50:50 joint venture agreement, which has yet to close, with Sibanye-Stillwater Limited (NYSE:SBSW) (South Africa) to develop the project; ioneer would retain full operatorship.
"Rhyolite Ridge is the most advanced undeveloped U.S. lithium project, and it is on track to provide an environmentally sustainable, long-life source of both lithium and boron for delivery into the U.S. domestic EV [electric vehicle] supply chain," according to a press release announcing the loan. "Financial close of the loan is conditional on several achievements including a positive Record of Decision and Final Investment Decision," by both ioneer and Sibanye-Stillwater.
"If finalized, the loan would be the first-ever by the DOE to provide financing for the processing component of a project where lithium is extracted and refined at site."
The proposed loan coupled with Sibanye-Stillwater's expected equity contribution to secure the 50% stake in the project, "once all conditions precedent for the joint venture have been fulfilled or waived, as applicable, are anticipated to fund a substantial part of the preliminary capital expenditure estimate."
The proposed loan is for approximately 10 years, and is being offered through the DOE's Loan Programs Office's (LPO) Advanced Technology Vehicles Manufacturing (ATVM) program, which aims to support the Biden administration's efforts to boost domestic production of critical minerals--such as lithium, rare-earth elements, nickel and cobalt--that are key to clean-energy technologies such as EVs and related components and materials.
The project, which is expected to kick off in 2024, includes the construction of mining, extraction and processing facilities. A proposed $640 million grassroot aboveground lithium-boron mine and mill is planned to be developed as a 20 million-ton-per-year open-pit mine with a 26-year mine life; an on-site production plant would produce more than 170,000 tons per year of boric acid and 20,600 tons per year of lithium carbonate--which could potentially support production of lithium for approximately 370,000 EVs each year, according to the LPO. Also under development are a sulfuric acid plant to leach ores produced in the mining process; a power plant that would utilize steam from the sulfuric acid plant; and a spent-ore storage facility expansion.
In late December, ioneer announced the Rhyolite Ridge project and its plan of operations were in the final stage of federal permitting, with the U.S. Bureau of Land Management (BLM) set to publish a notice of intent in the Federal Register, and conclude a public comment period in early February. The proposed plan would "become the basis for compliance during operations and closure." However, BLM cannot approve the plan, and construction cannot begin, until an environmental review under the National Environmental Policy Act (NEPA) is completed.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for related project reports.
There are three lithium-carbonate offtake agreements attached to the project: South Korean chemicals company EcoPro, the world's second-largest cathode producer, will offtake 7,000 tonnes annually, and Prime Planet Energy & Solutions, a joint venture between Toyota Motor Corporation (NYSE:TM) (Aichi, Japan) and Panasonic Corporation (Osaka, Japan), will offtake an undisclosed amount.
Most notably, Ford Motor Company (NYSE:F) (Dearborn, Michigan) will offtake 7,000 tons per year over a five-year term. That amount represents about 34% of the Rhyolite Ridge's annual output in the first five years of production, according to an ioneer press release announcing the agreement.
Ford plans to use the lithium carbonate to produce batteries for its EVs through BlueOval SK, Ford's battery-manufacturing joint venture with SK Innovation Company Limited (Seoul, South Korea), which aims to support EV production at Ford's North American assembly plants. The joint venture is at work on building a 4,000,000-square-foot $3.4 billion manufacturing plant in Glendale, Kentucky, and is planning to build a $2.3 billion second phase. Construction also is underway on a third, $2.9 billion battery-manufacturing plant, in Stanton, Tennessee. Subscribers to the GMI Industrial Manufacturing Project Database can click here to see the related project reports.
The only U.S.-based mine currently producing lithium, owned by Albemarle Corporation (NYSE:ALB) (Charlotte, North Carolina), also is located in Silverpeak, Nevada. Subscribers to Industrial Info's GMI Plant Database can click here for more information.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
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).
In September 2021, ioneer entered a 50:50 joint venture agreement, which has yet to close, with Sibanye-Stillwater Limited (NYSE:SBSW) (South Africa) to develop the project; ioneer would retain full operatorship.
"Rhyolite Ridge is the most advanced undeveloped U.S. lithium project, and it is on track to provide an environmentally sustainable, long-life source of both lithium and boron for delivery into the U.S. domestic EV [electric vehicle] supply chain," according to a press release announcing the loan. "Financial close of the loan is conditional on several achievements including a positive Record of Decision and Final Investment Decision," by both ioneer and Sibanye-Stillwater.
"If finalized, the loan would be the first-ever by the DOE to provide financing for the processing component of a project where lithium is extracted and refined at site."
The proposed loan coupled with Sibanye-Stillwater's expected equity contribution to secure the 50% stake in the project, "once all conditions precedent for the joint venture have been fulfilled or waived, as applicable, are anticipated to fund a substantial part of the preliminary capital expenditure estimate."
The proposed loan is for approximately 10 years, and is being offered through the DOE's Loan Programs Office's (LPO) Advanced Technology Vehicles Manufacturing (ATVM) program, which aims to support the Biden administration's efforts to boost domestic production of critical minerals--such as lithium, rare-earth elements, nickel and cobalt--that are key to clean-energy technologies such as EVs and related components and materials.
The project, which is expected to kick off in 2024, includes the construction of mining, extraction and processing facilities. A proposed $640 million grassroot aboveground lithium-boron mine and mill is planned to be developed as a 20 million-ton-per-year open-pit mine with a 26-year mine life; an on-site production plant would produce more than 170,000 tons per year of boric acid and 20,600 tons per year of lithium carbonate--which could potentially support production of lithium for approximately 370,000 EVs each year, according to the LPO. Also under development are a sulfuric acid plant to leach ores produced in the mining process; a power plant that would utilize steam from the sulfuric acid plant; and a spent-ore storage facility expansion.
In late December, ioneer announced the Rhyolite Ridge project and its plan of operations were in the final stage of federal permitting, with the U.S. Bureau of Land Management (BLM) set to publish a notice of intent in the Federal Register, and conclude a public comment period in early February. The proposed plan would "become the basis for compliance during operations and closure." However, BLM cannot approve the plan, and construction cannot begin, until an environmental review under the National Environmental Policy Act (NEPA) is completed.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for related project reports.
There are three lithium-carbonate offtake agreements attached to the project: South Korean chemicals company EcoPro, the world's second-largest cathode producer, will offtake 7,000 tonnes annually, and Prime Planet Energy & Solutions, a joint venture between Toyota Motor Corporation (NYSE:TM) (Aichi, Japan) and Panasonic Corporation (Osaka, Japan), will offtake an undisclosed amount.
Most notably, Ford Motor Company (NYSE:F) (Dearborn, Michigan) will offtake 7,000 tons per year over a five-year term. That amount represents about 34% of the Rhyolite Ridge's annual output in the first five years of production, according to an ioneer press release announcing the agreement.
Ford plans to use the lithium carbonate to produce batteries for its EVs through BlueOval SK, Ford's battery-manufacturing joint venture with SK Innovation Company Limited (Seoul, South Korea), which aims to support EV production at Ford's North American assembly plants. The joint venture is at work on building a 4,000,000-square-foot $3.4 billion manufacturing plant in Glendale, Kentucky, and is planning to build a $2.3 billion second phase. Construction also is underway on a third, $2.9 billion battery-manufacturing plant, in Stanton, Tennessee. Subscribers to the GMI Industrial Manufacturing Project Database can click here to see the related project reports.
The only U.S.-based mine currently producing lithium, owned by Albemarle Corporation (NYSE:ALB) (Charlotte, North Carolina), also is located in Silverpeak, Nevada. Subscribers to Industrial Info's GMI Plant Database can click here for more information.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
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).
