Ioneer to build lithium mine in Nevada for U. S. money
2023.01.13 14:54
Ioneer to build lithium mine in Nevada for U. S. money
By Tiffany Smith
Budrigannews.com – A significant step forward in President Joe Biden’s plan to establish a domestic supply chain for electric vehicles was announced on Friday by the U.S. Energy Department, which stated that it would lend ioneer Ltd up to $700 million to construct its Rhyolite Ridge lithium mining project in Nevada.
On Friday afternoon, Ioneer shares rose 16.3% to $16.30 in New York.
The loan, which was approved by Energy Secretary Jennifer Granholm, would be the first loan that Washington would give to a U.S. mining project for lithium, which is a crucial component in making batteries for electric vehicles. It reflects the growing concern of the government that without additional investment, demand for the white metal could exceed supply, delaying efforts to combat climate change.
Ioneer’s executive chairman, James Calaway, told Reuters, “The government is sending a strong signal that it’s time to let us go build this mine.” We now have the capital to construct a crucial lithium supply facility for the United States.
The department’s Advanced Technology Vehicles Manufacturing (ATVM) program office has been looking into the loan for more than two years. It is dependent on getting permits and other things. The funds would be used to construct a lithium carbonate processing facility at the Rhyolite Ridge site, close to an Albemarle (NYSE:) lithium operation. Corp. Jigar Shah, who heads the Energy Department’s Loan Programs Office, said in an interview that the Rhyolite Ridge project is a step forward in the United States’ plans to increase lithium production. In addition, he stated that he is “more than excited about the remaining pipeline” of businesses that have submitted applications for ATVM loans. After the funds have been distributed, the ioneer loan will have a term of ten years and a fixed interest rate.
The mine’s cost was approximately $785 million, according to a 2020 study. In light of recent inflation, Calaway stated that Australia-based ioneer would need to adjust that amount.
The Energy Department stated that the mine would reduce gasoline consumption by nearly 145 million gallons annually and produce enough lithium to construct 370,000 EVs annually.
Ford Motor Company Prime Planet Energy & Solutions, a Toyota Motor Corporation joint venture Panasonic and Corp (OTC:) Corp. has agreed to acquire the project’s lithium.
Calaway stated, “Ford, Toyota, and everyone else are waiting for us to get this built to supply lithium to the United States.”
After the U.S. Fish and Wildlife Service declared Tiehm’s buckwheat, a rare flower at the project site, an endangered species, the formal phase of the project’s permitting process began last month.
According to the company, it is capable of developing the mine while safeguarding the flower. According to the Energy Department, the loan is contingent on the completion of the environmental review procedure by Ioneer.
Shah stated, “I was made aware of the situation with buckwheat the first day I heard about the project.” We wouldn’t have moved forward if we hadn’t believed (ioneer) had a path to building the facility. It was part of our diligence.
The department also mentioned that Ioneer altered its mine plan to exclude buckwheat and has spent more than $1 million on related studies, greenhouses, and botanists.
Calaway stated, “The plant’s best chance is with us taking care of it.”
An environmental group opposed to the project, the Center for Biological Diversity (CBD), believes that the company will need to move its mine back at least 500 meters from any flowers. According to Patrick Donnelly of the CBD, “The mine that the Department of Energy thinks it is funding is not the mine that is going to get built.”
