Headline: Ioneer's Nevada Lithium Mine Secures Federal Approval
Today, the U.S. Department of the Interior granted final approval for ioneer Ltd's Rhyolite Ridge lithium mine in Nevada, marking it as the first domestic source of critical battery metal approved under President Joe Biden’s administration. This decision aims to strengthen the supply chain for electric vehicle manufacturers, including Ford Motor Company (NYSE:F), which sources lithium from the mine.
The authorization of the mine concludes an extensive review period of over six years, during which the fate of the rare Tiehm's buckwheat flower, native to the mine area, was debated. The project’s approval aligns with the Biden administration's recent efforts to increase domestic production of critical minerals and reduce reliance on China's market dominance.
With the mine's approval, ioneer will receive a $700 million loan from the U.S. Department of Energy and a $490 million investment from Sibanye Stillwater (NYSE:SBSW) to develop the project. The Department of the Interior’s Principal Deputy Assistant Secretary, Laura Daniel-Davis, emphasized that the decision was science-based and aimed to prioritize addressing climate change. The U.S. Bureau of Land Management released the record decision for the Rhyolite Ridge project, which includes significant protections for the local ecosystem and is expected to create hundreds of jobs.
Located approximately 360 kilometers north of Las Vegas, the mine is projected to produce enough lithium annually to power around 370,000 electric vehicles. Construction is expected to begin next year, with production starting by 2028. Rhyolite Ridge is set to become one of the largest lithium producers in the U.S., alongside Albemarle Corporation (NYSE:ALB) and Lithium Americas Corp. (NYSE:LAC).
The U.S. Geological Survey has classified lithium as a critical mineral for the country’s economy and security. Ioneer’s chairman, James Calaway, expressed pride in the company for being the first lithium mine approved under the current administration.
The mine will extract lithium and boron from a clay-like deposit, with boron being used in ceramics and soaps. Lithium will be processed into battery derivatives on site, and ioneer plans to recycle half of the water used, a rate above industry averages. Alongside Ford, a joint venture between Toyota Motor Corporation (NYSE:TM) and Panasonic Corp (OTC:PCRFY) has pledged to purchase lithium from Rhyolite Ridge.
However, the project’s approval has not been without controversy. The Center for Biological Diversity (CBD) and other conservation groups opposed the mine due to concerns over the endangered Tiehm's buckwheat. Following the permit announcement, CBD outlined plans to sue the government to halt the project, criticizing the Bureau of Land Management for insufficiently protecting the endangered plant species.
The Department of the Interior adjusted the mine’s operational plans to mitigate impact on the flower, including new design plans and the construction of a greenhouse for propagation efforts. Officials stated they believe the mine will not harm the flower, even though over 17,000 plant deaths near the site in 2020 were attributed to wildlife rather than human intervention.
Daniel-Davis highlighted the transparent process and the company's willingness to restructure the project to protect the unique flora.