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Highlights
- US grants approval for Ioneer’s Rhyolite Ridge lithium project in Nevada.
- Project expected to support Ford and other electric vehicle manufacturers.
- First production targeted for 2028 with significant job creation.
The US Bureau of Land Management has given final approval for Ioneer’s (ASX:INR) Rhyolite Ridge Lithium-Boron Project in Nevada. This development positions the project as a key supplier of lithium for major electric vehicle (EV) manufacturers, including Ford (NYSE:F). With this approval, Ioneer is set to contribute significantly to the US’s efforts to bolster domestic EV production.
Rhyolite Ridge is located approximately 362 kilometers north of Las Vegas and contains enough lithium to power an estimated 370,000 electric vehicles annually. Construction is expected to begin next year, with initial production targeted for 2028. The project is set to create about 500 jobs during the construction phase, and an additional 350 jobs once operations are fully underway.
In addition to lithium, the site will produce boron, a material commonly used in ceramics and soaps. Ioneer plans to process lithium on-site and recycle half of the water used during production, a move that aligns with sustainability goals. The project has received backing from the US Department of Energy, unlocking a $700 million loan and a $490 million equity investment from Sibanye Stillwater (JSE:SSW).
Ioneer’s Managing Director Bernard Rowe emphasized the importance of collaboration with various stakeholders, including federal and state governments, tribal entities, and local communities. He highlighted the transparent dialogue that has led to the approval of the project, which will play a critical role in the US’s EV battery supply chain.
Ford’s involvement with the Rhyolite Ridge project dates back to 2022 when the automaker signed an agreement to source lithium carbonate from the site. This lithium will be used in BlueOvalSK, Ford’s joint venture with SK Innovation (KRX:906770), to supply its factory in Kentucky. Additionally, Ioneer has signed an agreement with Prime Planet Energy & Solutions (PPES), a joint venture between Toyota (TYO:7203) and Panasonic (TYO:6752), ensuring a steady supply of lithium for the next five years.
The approval of this project comes at a time when the US is focused on reducing its dependence on foreign sources of critical minerals, particularly from China. The Biden administration has been actively encouraging domestic production of essential materials to strengthen the EV supply chain and meet the growing demand for sustainable energy solutions.
