1/3
Jan. 13 (UPI) — Lithium company Ioneer said Friday that a conditional $700 million federal loan will help the U.S. supply chain develop with minerals sourced from a mining project in Nevada. Ioneer is working to develop the Rhyolite Ridge lithium-boron mineral deposit in Nevada. The company believes the mine could support the development of enough batteries to power 400,000 electric vehicles per year.
“The conditional commitment highlights Rhyolite Ridge’s strategic role in strengthening America’s critical mineral supply chain in providing a secure, sustainable and reliable domestic source of lithium for the growing electric vehicle ecosystem,” James Calaway, the executive chairman of Ioneer, said.
Ioneer believes Rhyolite Ridge is the “most advanced” and underdeveloped lithium deposit in the country, with a long life as a resource for both lithium and boron, which are essential to the batteries that power electric vehicles.
The company will use the loan in part to fund its conceptual plans for Rhyolite Ridge. The loan is conditional on Ioneer securing the necessary permits to proceed with mining operations.
While the United States does contain the metals and minerals needed for the energy transition away from fossil fuels, mining is an expensive endeavor and only a handful of countries have proven success.
The Paris-based International Agency estimates that the Democratic Republic of Congo currently produces 70% of the world’s cobalt, used in lithium-ion batteries, while Australia, Chile and China account for 90% of the total global production of lithium.
But the search for more lithium is bearing fruit. Swedish mining company LKAB said Thursday it uncovered Europe’s largest known deposit of rare-earth elements.
Miner Sibanye-Stillwater holds a 50% interest in Rhyolite Ridge.
