Ioneer has secured a $996m loan from the US Department of Energy (DOE) Loan Programs Office (LPO) under the Advanced Technology Vehicles Manufacturing programme.
This funding will support the development of an on-site processing facility at the Rhyolite Ridge Lithium-Boron project in Esmeralda County, Nevada, significantly boosting domestic lithium production.
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It is expected to create several jobs in rural areas, support US manufacturers, and rebalance the global supply of lithium and boron, which is currently dominated by China and Turkey.
The $996m loan includes a $968m principal and $28m in capitalised interest, marking a $268m increase from the January 2023 conditional loan commitment.
Ioneer executive chair James Calaway said: “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 [to] secure domestic critical mineral production.”
Once operational, Rhyolite Ridge is expected to increase the country’s current domestic lithium supply fourfold, enough to power an estimated 370,000 electric vehicles annually.
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By GlobalDataThe project will create approximately 500 jobs during construction and 350 high-paying jobs during its operation.
It will become the first new lithium mine in the US in nearly 60 years while also being the first new boron mine in almost a century.
The project is set to generate revenue from lithium and boron produced directly at the mine site. It will contribute to establishing a sustainable lithium loop in Nevada, ensuring the recycling and reuse of critical minerals.
Ioneer managing director Bernard Rowe said: “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.”
Ioneer plans to limit its operational footprint by avoiding evaporation ponds and reducing water use by half compared to similar brine operations.
The facility will be steam-powered, operating independently from the Nevada energy grid, and will recycle half of all water used.
Its on-site location will minimise the need for transporting materials across oceans, reducing costs and kickstarting holistic supply chain investment in US mineral production and processing.
The investment is part of the LPO’s initiative to enhance the nation’s critical mineral supply chain. The loan concludes eight years of focused work across environmental, permitting, geology, and engineering.
Ioneer engaged with the DOE LPO for over three years, with the transaction timing primarily driven by receiving a positive Record of Decision from the Department of Interior in October 2024.
The next steps include finalising the updated resource/reserve and financial estimates.
The conditional Sibanye-Stillwater joint venture (JV) agreement will be closed to fund $490m for a 50% share of the Rhyolite Ridge project. Additional required funding will be procured and closed on a 50:50 basis with the JV partner.
A final investment decision will be made followed by construction targeted to begin later in 2025, with the first production targeted for 2028.
Goldman Sachs is acting as Ioneer’s financial adviser with Vinson & Elkins as its legal adviser.
