Ioneer (ASX:INR,NASDAQ:IONR) has received a US$996 million loan from the US Department of Energy’s (DOE) Loan Programs Office (LPO) to develop an on-site processing facility at its Rhyolite Ridge lithium-boron project.
Filed under the DOE’s Advanced Technology Vehicles Manufacturing program, the investment is part of the LPO’s work to build a critical minerals supply chain in the US, while creating rural jobs and supporting American manufacturers.
The US$996 million loan has a principal of US$968 million, with the remaining US$28 million as capitalised interest. It also represents a US$268 million principal increase from a conditional loan provided in January 2023.
Ioneer said it has engaged with the LPO for more than three years, with the timing of the transaction driven by its receipt of a positive record of decision from the Department of the Interior in October 2024.
“The need for domestically sourced and processed lithium and boron has never been greater,” said Ioneer Executive Chairman James Calaway in a Monday (January 20) press release. “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.’
Rhyolite Ridge is located in Esmeralda County, Nevada, and the company believes that once operational it will increase the nation’s lithium supply by four times, reducing reliance on foreign sources.
Ioneer also notes that the asset is North America’s only known lithium-boron deposit, and one of only two such deposits worldwide. It could power upward of 50 million electric vehicles over a 26 year mine life.
Managing Director Bernard Rowe added that the project is fully permitted and construction ready.
“(It) will not only create new jobs in Nevada but foster innovation across the country,’ he said.
The US Bureau of Land Management released a final environmental impact statement for the project in September 2024.
At the time, Ioneer said Rhyolite Ridge was the first lithium project to reach this stage of the environmental permitting review process under the Biden administration.
Construction is targeted for late 2025, and is expected to last an average of 36 months.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.