South African miner Sibanye-Stillwater has announced that it will withdraw from a joint venture (JV) established with Australian-listed ioneer to develop the Rhyolite Ridge Lithium-Boron Project in Esmeralda County, Nevada, US.
The decision was driven by a sharp decline in lithium prices, which have fallen by more than 80% since their peak in November 2022 due to oversupply in the market, reported Reuters.
Lithium is a crucial material for electric vehicle (EV) batteries, but the excess supply has lowered its value.
As a result, many companies have been forced to halt mining operations and pause new projects as lower prices make production less profitable, the report said.
The JV, initially announced in September 2021, was contingent on several conditions including a final investment decision by Sibanye-Stillwater’s Board.
However, after reviewing the updated project and technical information provided by ioneer in October 2024, the Board decided the project did not meet its investment criteria under current pricing assumptions.
Under the 2021 deal, Sibanye-Stillwater was set to invest $490m for a 50% interest in the JV, with an option to contribute an additional $50m for a stake in the North Basin.
The company also holds a 6% share in ioneer following a strategic investment of $70m in 2021.
ioneer expressed relief at the resolution of this pending matter, which allows it to move the fully permitted and 100%-owned Rhyolite Ridge project forward towards a final investment decision.
The company is now seeking a new equity partner to bring the project into production.
Last month, ioneer closed an essential federal permit for the project and secured a $996m loan from the US Department of Energy (DOE).
In a company statement, ioneer said that Sibanye was not a signatory to the loan and the decision “will have no impact on Ioneer’s ability to draw on the loan once conditions precedent have been met”.
