KEY POINTS
- Biden administration approves ioneer’s lithium mine in Nevada.
- Rhyolite Ridge to supply lithium for around 370,000 EVs annually.
- Environmental groups plan to challenge the project over endangered species concerns.
The Biden administration has granted final approval for ioneer’s Rhyolite Ridge lithium mine in Nevada, marking a significant step in the U.S. efforts to boost domestic production of critical minerals.
This project will become a vital supplier of lithium to major electric vehicle (EV) manufacturers, including Ford, as demand for battery metals surges.
Project milestones and approvals
The permit for the Rhyolite Ridge project was granted by the U.S. Interior Department following a protracted six-year evaluation process. The lithium necessary to power about 370,000 electric vehicles a year will be extracted from the mine, which also contains boron.
The clearance of the project opens the door for $1.19 billion in funding, which includes $490 million in equity investment from Sibanye Stillwater and a $700 million loan from the U.S. Department of Energy.
The decision coincides with efforts by the U.S. administration to challenge China’s hegemony in the vital minerals market.
“The decision reflects the Biden administration’s commitment to addressing climate change through the expansion of domestic mineral production,” said Laura Daniel-Davis, acting deputy secretary for the Interior Department.
Balancing mineral extraction and environmental concerns
Despite the mine’s potential to revolutionize lithium production in the U.S., it has faced opposition from conservationists.
Furthermore, the Rhyolite Ridge site is home to the endangered Tiehm’s buckwheat flower, leading to tension between environmentalists and government regulators.
According to Mining.com, the Center for Biological Diversity (CBD) has expressed its opposition to the project, claiming it could push the rare flower to the brink of extinction.
In response, ioneer has reconfigured the project to minimize environmental impacts, including building a greenhouse for the propagation of the Tiehm’s buckwheat.
The company emphasized that the mine’s design incorporates protections for the local ecosystem, but environmental groups, such as the CBD, have vowed to challenge the approval in court.
Future of U.S. lithium production
Rhyolite Ridge mine construction is scheduled to commence next year, and production is anticipated to begin by 2028.
The project will join Albemarle and Lithium Americas as one of the biggest producers of lithium in the US once it is fully operational, helping to feed the rapidly expanding electric vehicle market.
According to the U.S. Geological Survey, lithium is an essential mineral for both the economy and national security.
In addition, the completion of the Rhyolite Ridge project will be crucial to lowering the United States’ dependency on foreign lithium supplies and assisting in its shift to cleaner energy sources.
