Ioneer closes DOE loan to advance Rhyolite Ridge Lithium-Boron Project

The Rhyolite Ridge Lithium-Boron Project, owned by Ioneer Ltd, has achieved a critical milestone with the closing of a $996 million loan from the U.S. Department of Energy‘s (DOE) Loan Programs Office (LPO). This significant investment underscores the U.S. government’s commitment to developing a domestic critical mineral supply chain, a cornerstone of the nation’s renewable energy and manufacturing future.

Located in Esmeralda County, Nevada, Rhyolite Ridge is set to revolutionise U.S. lithium and boron production. The project is a key component in reducing reliance on foreign mineral sources, with its lithium essential for electric vehicle (EV) batteries and boron critical for industrial and agricultural applications.

What is the Rhyolite Ridge Project, and Why Does It Matter?

The Rhyolite Ridge Project, fully permitted and construction-ready, represents a pivotal step toward the United States regaining control over its supply of critical minerals. Once operational, the project will quadruple the nation’s lithium output and become the first boron mine in nearly a century. These materials are vital for the green energy transition, as lithium powers EV batteries, and boron is used in various high-tech applications.

The $996 million loan, including $968 million in principal and $28 million in capitalised interest, was provided under the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) program. According to Bernard Rowe, Managing Director of Ioneer, the loan “demonstrates the U.S.’s confidence in this project and its importance to the domestic supply chain.”

The project aligns with national priorities to create a sustainable mineral supply chain, mitigating dependence on countries such as China and Turkey, which currently dominate lithium and boron production, respectively.

How Will Rhyolite Ridge Impact the US Economy and Green Energy Sector?

Creating jobs and boosting local economies

Rhyolite Ridge is projected to create 500 jobs during its construction phase and sustain 350 high-paying positions during its decades-long operation. The influx of employment opportunities is expected to stimulate economic growth in rural Nevada, further embedding the state in the green energy supply chain.

Powering electric vehicles

The lithium extracted from Rhyolite Ridge will supply enough material to support the production of approximately 370,000 EVs annually. This aligns with the U.S. government’s broader initiatives to transition away from fossil fuels by promoting EV adoption.

Strengthening supply chain resilience

The facility will produce lithium and boron directly at the site, reducing costs, transportation emissions, and global supply chain vulnerabilities. The creation of a sustainable domestic critical mineral supply chain will empower the U.S. to compete more effectively in the global clean energy economy.

How Is the Project Setting New Standards in Sustainable Mining?

Rhyolite Ridge’s state-of-the-art design incorporates several innovations to reduce environmental impact. Unlike traditional mining operations, this project avoids the use of evaporation ponds, curtails water consumption by 50%, and operates a steam-powered facility independent of Nevada’s energy grid.

Additionally, the on-site processing facility will recycle half of its water usage and eliminate the need to transport materials across oceans, significantly lowering the project’s carbon footprint. According to Ioneer, these measures set a new benchmark for modern mining operations, combining economic viability with environmental responsibility.

What Challenges Does the Project Face Before Full Operation?

Despite securing federal permits in October 2024 and substantial financial backing, several steps remain before production begins. Ioneer must finalise resource and reserve estimates, close its conditional joint venture with global mining group Sibanye-Stillwater, and procure additional funding.

The joint venture, valued at $490 million, will give Sibanye-Stillwater a 50% stake in the project. Ioneer has also engaged Goldman Sachs as its financial adviser and Vinson & Elkins for legal counsel to navigate the complexities of these agreements.

Construction is slated to begin in late 2025, with a projected timeline of 36 months. First production is expected in 2028, marking a significant milestone in U.S. critical mineral development.

What Does the Future Hold for Rhyolite Ridge and the US Critical Mineral Industry?

The Rhyolite Ridge project represents more than a single investment—it signifies a broader shift in the U.S.’s approach to energy independence and critical mineral production. With the potential to power millions of EVs and establish a sustainable lithium loop, the project positions Nevada as a hub for green energy innovation.

“The need for domestically sourced and processed lithium and boron has never been greater,” said James Calaway, Executive Chairman of Ioneer. “Rhyolite Ridge is a game-changer in achieving supply chain independence.”

As global demand for lithium and boron surges, projects like Rhyolite Ridge will play an increasingly critical role in meeting energy transition goals. By prioritising sustainability and efficiency, the project not only promises to deliver critical materials but also sets a new standard for modern mining practices.