Summary
- Rhyolite Ridge will process lithium carbonate to support the domestic EV battery supply chain
- The U.S. Department of Energy’s Loan Programs Office announced a $996 million loan guarantee for Ioneer Rhyolite Ridge LLC
- Ioneer entered into an agreement with Sibanye Stillwater to establish a joint venture for the project
- The project supports the Biden-Harris Administration’s commitment to strengthen the nation’s domestic battery supply chain
- The project is expected to create up to 500 construction jobs and approximately 350 operations jobs
Article
The U.S. Department of Energy’s Loan Programs Office (LPO) has announced the closing of a $996 million loan guarantee for Ioneer Rhyolite Ridge LLC to develop a domestic supply of lithium carbonate for electric vehicle (EV) batteries. The project, located in Nevada, will support the production of lithium for more than 370,000 EVs each year, reducing gasoline consumption and carbon dioxide emissions. The project aligns with the Biden-Harris Administration’s commitment to strengthen the nation’s domestic battery supply chain and electrify the transportation sector to reduce reliance on fossil fuels.
The urgency to secure critical materials for batteries is expected to increase rapidly as demand for lithium exceeds global production by 2030. This has led U.S. auto manufacturers to seek a robust domestic supply of critical materials, including lithium, to meet the growing demand for EVs. The Rhyolite Ridge project has already secured offtake agreements with major companies like Ford, Prime Planet Energy & Solutions, and EcoPro Innovation, ensuring a stable market for its lithium carbonate.
The Rhyolite Ridge project is the first lithium-boron project in the world and the second operational lithium project in the U.S. Currently, U.S. auto manufacturers are dependent on international mines for lithium sourcing, highlighting the importance of developing a domestic supply chain. The project is expected to create up to 500 construction jobs and 350 operations jobs, supporting the local economy and community. Rhyolite Ridge is committed to hiring locally, offering training opportunities, and funding scholarships for technical and managerial fields.
The loan provided by LPO’s Advanced Technology Vehicles Manufacturing program is part of the Biden-Harris Administration’s efforts to onshore and re-shore electric vehicle and critical mineral supply chains. Developing a U.S. supply chain for these materials is a national priority as the country works towards energy independence and lower costs for consumers. The DOE’s comprehensive strategy to secure America’s clean energy supply chain includes increasing availability of critical materials essential for clean energy technologies.
Overall, the Rhyolite Ridge project represents a significant step towards strengthening the domestic battery supply chain, supporting the growing EV market, and enhancing U.S. economic and national security. By investing in projects like Rhyolite Ridge, the U.S. is taking important strides towards achieving its climate and economic goals while creating opportunities for local communities and contributing to the cleantech revolution.
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