A Nevada lithium mine will be the second facility to receive federal government support as the U.S. seeks to create its own clean-energy supply chain.
Key Details
- Lithium is a vital component in manufacturing electric vehicle (EV) batteries. In an effort to strengthen domestic supply of this mineral, the U.S. Energy Department has announced a $ 700 million loan to Ioneer Ltd.’s Rhyolite Ridge Lithium-Boron Project.
- The Nevada mine has tentative plans to supply both Ford Motor and Toyota Motor with lithium for their thousands of projected EVs next year.
- The Advanced Technology Vehicles Manufacturing Loan Program is providing the funding. This program is a part of the Biden administration’s plan to increase EV-battery production in the U.S.
- Lithium has uses beyond EV batteries. The mineral is also vital to weapons production and grid storage. Currently, the U.S. is dependent on international lithium mining.
Why it’s news
Lithium is found around the globe, with the largest deposits in Chile. The U.S. has its own substantial supply of lithium, however, the Nevada mine is the only major lithium manufacturer in the U.S.
Currently, Asian countries dominate the market of refined lithium carbonate. Investment in the Rhyolite Ridge mining facility is significant as the region represents one of the largest lithium-boron deposits in the world.
Once Ioneer has received proper regulatory approval, the company plans to begin construction on the mine next year. By 2026, Ioneer expects to begin procuring lithium. The company is waiting for approval from the U.S. Interior Department as an endangered wildflower has been found on public land near the mine.
When completed, the mine could supply enough lithium for nearly 370,00 EVs per year.
