
Ioneer Ltd (ASX: INR, Nasdaq: IONR) has successfully closed a US$996 million loan from the U.S. Department of Energy’s Loan Programs Office to develop an on-site processing facility at its Rhyolite Ridge Lithium-Boron Project in Nevada.
This significant financial boost, part of the Advanced Technology Vehicles Manufacturing program, represents a US$268 million increase from the initial commitment made in January 2023.
The Rhyolite Ridge project is set to become a cornerstone in strengthening America’s critical mineral supply chain.
Once operational, it will quadruple the nation’s domestic lithium supply, powering an estimated 370,000 electric vehicles annually.
The project is expected to create 500 construction jobs and 350 high-paying operational positions, marking the first new lithium mine in the United States in nearly six decades.
James Calaway, Executive Chairman of Ioneer, highlighted the crucial need for domestic lithium and boron production, stating: “The United States requires Rhyolite Ridge and more projects like it if we want secure domestic critical mineral production.”
Bernard Rowe, Managing Director, added that the loan demonstrates the United States’ confidence in the project’s importance.
The Rhyolite Ridge project boasts innovative environmental features, including a reduced operational footprint and water usage compared to similar operations.
Its steam-powered facility will operate independently from the Nevada energy grid, significantly reducing its carbon footprint.
With construction targeted for late 2025 and first production expected in 2028, Ioneer is now focusing on finalising resource estimates, closing a joint venture agreement with Sibanye-Stillwater, and securing additional funding.
This milestone represents the culmination of eight years of comprehensive work across environmental, permitting, geological, and engineering aspects.
The loan terms include a fixed interest rate based on the U.S. Treasury Rate over a 20-year period, with customary project finance covenants and conditions.
This financial backing not only supports Ioneer’s ambitious project but also aligns with the broader U.S. strategy to reduce dependence on foreign sources for critical minerals, particularly challenging the dominance of China and Turkey in lithium and boron production respectively.
As the global demand for electric vehicles continues to rise, the Rhyolite Ridge project is poised to play a pivotal role in securing America’s position in the evolving landscape of clean energy and advanced manufacturing.