lithium company Ionization said there has been guaranteed a conditional commitment for a loan of up to $700 million from the Department of Energy as the US seeks to develop a new supply chain for materials that are critical to the energy transition.
Ioneer is developing the Rhyolite Ridge Lithium-Boron Project in Esmeralda County, Nevada. When fully operational, the site will produce enough lithium for 400,000 electric vehicles, the company said, while also producing boron.
The plant is not yet operational, but Ioneer has reached an offtake agreement with it Ford and Toyota. Some experts believe there won’t be enough lithium to meet the boom in demand fueled by electric vehicles, meaning automakers are increasingly signing deals with upstream players to secure supplies.
Rhyolite Ridge is a joint venture with miner Sibanye-Stillwater, which owns 50% of the project after investing $490 million in September 2021.
The permitting process for new lithium mines is extensive. Ioneer’s loan from the Department of Energy is contingent on a number of conditions, including the company receiving all necessary permits. The company in December said it was in the final stages of the federal permitting process. The Center for Biological Diversity has come out against the project, saying it poses an “existential threat” to rare wildflowers.
If approved, the loan, made under the Department of Energy’s Advanced Technology Vehicle Production program, would be for a lithium processing facility at the Ioneer site.
Esmeralda County is also home to Albemarle’s The Silver Peak facility, which is currently the only lithium plant operating in the US
The US has a lot of lithium, but getting it out of the ground is expensive, and new projects often face opposition over environmental concerns.
Still, Friday’s announcement is the latest of lithium companies to announce new or expanded US plants on the heels of the Inflation Reduction Act. The law provides support for lithium companies on the manufacturing side, while also tying incentives to EV tax rebates where vehicle batteries are manufactured.
Albemarle is in the process of reopening its Kings Mountain mine in North Carolina, while also doubling output at its Silver Peak facility.
Piedmont Lithium District plans were unveiled for a new lithium refinery plant in Tennessee in September, and American Lithium is in the process of developing the Thacker Pass mine in Nevada. This project has been delayed for many years allowing obstacles.