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Highlights
- Multimillion-dollar funding boost for critical mineral projects.
- Projects aim to strengthen US battery materials supply chain.
- Ioneer and Element 25 emphasize job creation and innovation.
In a major step towards bolstering domestic production of critical minerals, Ioneer (ASX:INR) and Element 25 (ASX:E25) have secured substantial funding from the US Department of Energy (DOE). These investments aim to strengthen the US supply chain for essential battery materials, positioning both companies as key players in the global transition to clean energy.
Ioneer’s Landmark Funding for Rhyolite Ridge Project
Ioneer has closed a US$996 million loan under the DOE’s Advanced Technology Manufacturing program to develop an onsite processing facility at the Rhyolite Ridge Lithium-Boron Project in Nevada. This represents a significant increase from the company’s January 2023 conditional loan commitment, with the total project loan growing by US$268 million.
With a market capitalisation of $400.46 million, Ioneer’s project promises to quadruple the US domestic lithium supply, powering approximately 370,000 electric vehicles annually. During its development, the project will create 500 construction jobs and later support 350 high-paying operational roles. Beyond boosting US lithium production, the facility is also expected to challenge China and Turkey's dominance in the lithium and boron sectors.
The company plans to finalise its resource, reserve, and financial estimates while progressing its joint venture with Sibanye-Stillwater to secure $490 million in funding for a 50% project stake. Ioneer expects construction to begin this year, with an estimated timeline of 36 months targeting initial production by 2028.
Element 25’s US-Based Refining Facility
Element 25 has been awarded US$166 million through the DOE’s Battery Materials Processing Grant program to construct a high-purity manganese sulfate monohydrate (HPMSM) facility. Located in Louisiana, the plant will span 21,000 square meters and produce 71,650 tonnes of HPMSM annually using ore from the company’s Butcherbird Mine in Western Australia.
Element 25, with a market capitalisation of $59.37 million, aims to prioritize local workforce engagement and supplier partnerships. The construction phase is projected to generate 400 jobs, with an additional 144 ongoing roles once the facility is operational. This funding complements the US$115 million already secured from General Motors (NYSE:GM) and Stellantis (NYSE:STLA).
These funding commitments underscore the US government’s focus on developing a resilient supply chain for critical minerals. With Ioneer and Element 25 advancing their respective projects, the initiatives are set to contribute significantly to the clean energy transformation, while creating jobs and driving innovation.
