Ioneer Ltd (ASX: INR, Nasdaq: IONR) has secured a $996 million loan from the U.S. Department of Energy (DOE) to support the development of the Rhyolite Ridge Lithium-Boron Project in Nevada. The loan, which marks an important milestone for the project, will help fund the construction of an on-site processing facility, advancing the critical supply chain for lithium and boron in the United States.

A Step Towards Strengthening the U.S. Critical Minerals Supply Chain

The loan from the DOE’s Loan Programs Office (LPO) under the Advanced Technology Vehicles Manufacturing (ATVM) program is part of the U.S. government’s efforts to boost domestic production of critical minerals. Rhyolite Ridge is set to play a significant role in reducing the nation’s reliance on imports, especially from countries like China and Turkey, who currently dominate lithium and boron production.

Once operational, the Rhyolite Ridge project will increase the U.S. domestic lithium supply fourfold and support the production of electric vehicles (EVs). The mine will provide critical raw materials for an estimated 370,000 EVs annually. The project will also create hundreds of high-paying jobs, with 500 jobs during construction and 350 permanent jobs once in operation. The mine will be the first new lithium mine in the U.S. in nearly 60 years and the first new boron mine in almost 100 years.

Sustainable Mining and Processing Practices

Ioneer has committed to limiting the environmental impact of the Rhyolite Ridge project. Unlike traditional brine operations, the unique hard rock mineralogy at Rhyolite Ridge will allow for a reduced operational footprint, eliminating the need for evaporation ponds. Additionally, the project will use half the water typically required by brine operations and will recycle half of the water used at the processing facility. The plant will also operate independently from Nevada’s energy grid, reducing its carbon footprint.

Next Steps for the Rhyolite Ridge Project

Ioneer plans to finalize updated resource and financial estimates and close a joint venture agreement with Sibanye-Stillwater, which will contribute $490 million for a 50% share in the project. The final investment decision is expected later in 2025, with construction beginning soon after. The project aims for its first production by 2028, setting the stage for a new era of sustainable critical minerals production in the United States.