ioneer (ASX:INR) inks new agreement with Ford, shares gain

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ioneer (ASX:INR) inks new agreement with Ford, shares gain

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 ioneer (ASX:INR) inks new agreement with Ford, shares gain
Image source: © Willgame | Megapixl.com

Highlights

  • ioneer has inked a Lithium offtake deal with
  • As part of the deal, ioneer will supply lithium from the Rhyolite Ridge project in Nevada.
  • The legally binding agreement signed by ioneer is for 7,000 tpa of lithium carbonate.

Lithium-boron supplier ioneer Ltd (ASX:INR) today (July 22) shared that it has signed a binding lithium offtake deal with Ford Motor Company.

As per the deal, ioneer will deliver lithium carbonate to Ford from its Nevada-based Rhyolite Ridge Lithium-Boron Project.

ioneer’s latest deal with with Ford follows the  offtake agreement signed between the two sides on 16 February 2022. The earlier agreement covered around 34% of anticipated annual lithium carbonate production from Rhyolite Ridge in first three years of operation.

On the back of the news, shares of ioneer were trading 2.03% higher at AU$0.51 each on ASX at 2.01 PM AEST. This outperforms ASX 200 Materials Index, which was 0.16% down at 14,859.80 points at 2.05 PM AEST.

Image Source: © 2022 Kalkine Media ®

Data Source- Company announcement dated 22 July 2022

Other details of the deal

ioneer will provide Ford with 7,000 tonnes of lithium carbonate annually over five years, beginning in 2025. Through BlueOval SK, the joint venture between Ford and SK for the manufacture of batteries, Ford aims to employ ioneer's lithium carbonate to create batteries for Ford electric vehicles.

Ioneer can produce lithium not only in the United States but also at the lowest point on the worldwide cost curve because of the dual production of metal and boric acid. Ioneer plans to start manufacturing in the second half of 2025 to meet the country's urgent demand for battery materials.

 About ioneer

The Rhyolite Ridge Lithium-Boron Project is owned by ioneer Ltd. It is the only known lithium-boron deposit in North America and only the second known such deposits in the world.

 

Image Source: © 2022 Kalkine Media ®

Data Source- Company announcement dated 22 July 2022

The 2020 Definitive Feasibility Study (DFS) verified Rhyolite Ridge as a top-tier lithium and boron project that is anticipated to develop into a large, long-lived, affordable source of these elements necessary for a sustainable future.

To expand the Rhyolite Ridge project, ioneer and Sibanye Stillwater Ltd. established a 50/50 joint venture agreement in September 2021. Ioneer also signed an offtake deal with Korea's EcoPro Innovation in 2021. The Project will be run by ioneer and is anticipated to go live in 2025.

Stock performance: Shares of ioneer has provided a negative return of around 39% YTD while the shares have jumped over 27% in the last one year (details taken at 1.57 PM AEST).

 

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