The Biden administration is backing a Nevada lithium mine that would be only the second in the US. This would boost the domestic supply of the critical mineral needed to make electric vehicle batteries.
The Energy Department has conditionally committed $700 million to Ioneer Ltd.'s Rhyolite Ridge Lithium-Boron Project. This project has the potential to supply lithium to Ford Motor Co. and Toyota Motor Corp. for 370,000 electric vehicles per year. Sibanye Stillwater Ltd. is a partner in this project.
The funding, which comes from the department's Advanced Technology Vehicles Manufacturing Loan Program, will help the Biden administration create a domestic battery supply chain. This is part of the administration's goal to have half of all vehicles sold in the US by the end of the decade be emissions-free.
The demand for lithium is expected to exceed current production levels by 2030. This is due to the growing demand for lithium-ion batteries for use in grid storage and electric vehicles. The United States currently relies on imported lithium to meet its needs, but this may not be sustainable in the long term.
The US Department of Energy has announced that developing a domestic supply chain for critical materials is a national priority. This focus is necessary in order to increase the availability of clean energy technologies, which are essential for reaching national climate and economic goals.
The Rhyolite Ridge deposit is one of the world's two largest known lithium-boron deposits, according to the U.S. Department of Energy. Although Asia currently dominates the lithium carbonate refining process, the Rhyolite Ridge deposit could provide a significant source of this important mineral in the future.
Ioneer is expecting to receive US approvals that will allow the company to begin construction on the project next year with the goal of producing lithium by 2026, according to the company. It still needs to obtain final approval from the US Interior Department because public lands near the site are home to the endangered wildflower Tiehm's buckwheat.
The Energy Department said that the company has invested $1.2 million on research to preserve the plant. The company has revised its mining plan to avoid direct impacts on the plant.
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