Rhyolite Ridge Secures $996M DOE Loan to Boost U.S. Critical Mineral Production
The Rhyolite Ridge Lithium-Boron Project in Esmeralda County, Nevada, has reached a significant milestone with the closing of a $996 million loan from the U.S. Department of Energy (DOE) Loan Programs Office (LPO). This funding, provided under the Advanced Technology Vehicles Manufacturing (ATVM) program, will play a crucial role in developing an on-site processing facility to enhance domestic lithium and boron production.
This substantial investment is part of the DOE’s broader efforts to fortify the nation’s critical mineral supply chain, a strategic move aimed at reducing reliance on foreign sources. Currently, China and Turkey dominate the global lithium and boron markets, respectively. By supporting domestic projects like Rhyolite Ridge, the United States seeks to rebalance this supply chain, ensuring greater self-sufficiency and security in critical mineral production.
The loan, which consists of a $968 million principal and $28 million in capitalized interest, marks a $268 million increase from the initial conditional loan commitment announced in January 2023. This funding will accelerate the development of Rhyolite Ridge, a project that is expected to significantly bolster the nation’s lithium supply. Once fully operational, the project is projected to quadruple domestic lithium production, providing enough material to power approximately 370,000 electric vehicles annually. Additionally, the initiative will generate substantial employment opportunities, with an estimated 500 jobs created during the construction phase and 350 high-paying, long-term positions once the mine is operational.
Rhyolite Ridge represents a historic development in the U.S. mining industry. It will be the first new lithium mine in the country in nearly sixty years and the first boron mine in almost a century. The project will generate dual revenue streams from lithium and boron, both of which are essential components in a variety of industrial applications, including battery production, glass manufacturing, and agricultural fertilizers. Furthermore, the mine will contribute to establishing a sustainable lithium loop in Nevada, ensuring the efficient recycling and reuse of these critical minerals.
James Calaway, Executive Chairman of Ioneer, emphasized the national importance of the project. “The need for domestically sourced and processed lithium and boron has never been greater. The United States requires Rhyolite Ridge and more projects like it if we want secure domestic critical mineral production. It’s as simple as that,” he stated. “We’re thrilled to provide these critical battery components to the American manufacturing supply chain.”
Bernard Rowe, Managing Director of Ioneer, echoed these sentiments, highlighting the project’s readiness for construction. “Rhyolite Ridge is fully permitted and construction ready. This loan demonstrates the United States’ confidence in and importance of our lithium-boron mine project. Rhyolite Ridge will not only create new jobs in Nevada but foster innovation across the country,” Rowe said. “Today’s announcement is the culmination of a rigorous and yearslong process with our federal, state, local, and Tribal partners. Ioneer looks forward to bringing these urgently needed materials to market and is proud to set the new standard for modern mining operations and community engagement.”
One of the defining features of Rhyolite Ridge is its commitment to sustainability and environmental responsibility. Unlike traditional lithium extraction methods that rely on evaporation ponds, the project will leverage its unique hard rock mineralogy to minimize environmental impact. This approach will reduce water consumption by half compared to similar brine operations. Additionally, the project will incorporate a steam-powered processing facility, allowing it to operate independently from the Nevada energy grid. The state-of-the-art facility will also recycle 50% of the water it uses, further minimizing its ecological footprint.
By locating the processing facility on-site, Rhyolite Ridge will eliminate the need for extensive transportation of raw materials across international borders, reducing costs and streamlining production. This initiative is expected to catalyze further investments in the domestic mineral production and processing industries, strengthening the entire U.S. supply chain.
The approval of this loan marks the culmination of an eight-year journey involving extensive work across environmental, permitting, geological, and engineering disciplines. Ioneer has been engaged with the DOE Loan Programs Office for over three years, with final approval largely dependent on the receipt of a positive Record of Decision from the Department of the Interior, which was granted in October 2024.
About Ioneer
Ioneer Ltd is an emerging leader in lithium–boron production and is the sole owner of the Rhyolite Ridge Lithium-Boron Project. This project is one of only two known lithium-boron deposits globally and the only one in North America. As a key component of Nevada’s evolving Lithium Loop, Rhyolite Ridge is expected to contribute significantly to the supply of critical materials necessary for electric vehicle production and other advanced technologies.
In October 2024, Ioneer received the final federal permit for the project from the Bureau of Land Management, completing a formal permitting process that began in early 2020. The company has already secured offtake agreements with major industry players, including Ford Motor Company and Prime Planet & Energy Solutions (a joint venture between Toyota and Panasonic) in 2022, as well as Korea’s EcoPro Innovation in 2021.
Additionally, in September 2021, Ioneer entered into a strategic agreement with Sibanye-Stillwater. Under the terms of this agreement, Sibanye-Stillwater will acquire a 50% interest in the Rhyolite Ridge Project, pending satisfaction of certain conditions. Ioneer will retain the remaining 50% interest and maintain operational management of the joint venture.
With its advanced infrastructure, strong financial backing, and commitment to sustainable mining practices, Rhyolite Ridge is set to become a cornerstone of the U.S. critical minerals industry, playing a pivotal role in the nation’s transition to clean energy and advanced manufacturing.
