Rhyolite Ridge Lithium-Boron Project Closes Upsized $996 Million Loan From U.S. Department of Energy to Accelerate Domestic Critical Mineral Production

Rhea-AI Summary

Ioneer (IONR) has secured a $996 million loan from the U.S. Department of Energy for its Rhyolite Ridge Lithium-Boron Project in Nevada. This represents a $268 million increase from the January 2023 conditional commitment. The project, which received federal permits in October 2024, will be the first new lithium mine in the US in almost 60 years.

Once operational, the facility will quadruple domestic lithium supply, powering approximately 370,000 electric vehicles annually. The project will create 500 construction jobs and 350 permanent positions. The facility features innovative technology, including steam power operation independent from the Nevada grid, and will recycle 50% of water used.

Key financial terms include a 20-year tenor with interest rates fixed at the U.S. Treasury Rate. Next steps include finalizing resource estimates, closing the Sibanye-Stillwater JV agreement for $490 million (50% project share), and securing additional funding. Construction is targeted for late 2025, with first production expected in 2028.

Positive

• Secured $996M DOE loan funding, representing $268M increase from initial commitment
• Will quadruple US domestic lithium supply
• Project is fully permitted and construction-ready
• Will create 500 construction jobs and 350 permanent positions
• Dual revenue streams from both lithium and boron production
• 50% water recycling and reduced carbon footprint through steam power

Negative

• Production not expected until 2028
• Additional funding still required beyond DOE loan
• Sibanye-Stillwater JV agreement not yet finalized

Insights

Project Finance Analyst

The $996 million DOE loan represents a transformative development for Ioneer, marking a $268 million increase from the initial commitment. The loan structure, featuring a 20-year tenor at Treasury rates with $968 million principal and $28 million capitalized interest, provides exceptionally favorable terms compared to traditional project financing. The government backing substantially de-risks the project's capital structure and validates its strategic importance.

The financing package's completion, coupled with the pending $490 million Sibanye-Stillwater JV investment, creates a robust funding foundation. The Treasury-rate pricing offers significant cost advantages over commercial alternatives, enhancing project economics. The loan's structure, with customary project finance covenants, balances operational flexibility with appropriate risk controls.

Mining Industry Analyst

This project represents a strategic breakthrough in domestic critical minerals production. The facility's projected output will quadruple U.S. lithium supply capacity, while its dual revenue stream from lithium and boron provides important operational diversification. The innovative processing approach, eliminating evaporation ponds and reducing water usage by 50%, sets new environmental standards for mineral extraction.

The facility's independence from the Nevada power grid through steam power generation, combined with on-site processing capabilities, creates significant operational advantages. The 2028 production timeline aligns with projected supply deficits in both lithium and boron markets. With 350 permanent high-paying jobs and an estimated capacity to support 370,000 EVs annually, the project's economic impact extends well beyond direct mineral production.

Supply Chain Strategist

The project's strategic value lies in its potential to reshape U.S. critical mineral supply chains. By establishing domestic processing capabilities, it reduces dependence on Chinese lithium processing and Turkish boron production. The integrated mine-to-processing model eliminates international logistics complexities and associated costs, creating a more resilient supply chain.

The creation of a sustainable lithium loop in Nevada represents a significant advancement in domestic mineral security. The project's ability to process materials on-site addresses a important gap in the U.S. battery supply chain, potentially attracting additional downstream investments in battery manufacturing and recycling infrastructure to the region.

• Ioneer project, which secured federal permit in October 2024, receives funding increase from January 2023 conditional commitment.
• Rural Nevada project demonstrates the strategic importance in developing a domestic critical mineral supply chain.

RENO, Nev.--(BUSINESS WIRE)-- Ioneer Ltd (ASX: INR, Nasdaq: IONR) (Ioneer) announced the closing of a $996 million loan from the U.S. Department of Energy (DOE) Loan Programs Office (LPO) under the Advanced Technology Vehicles Manufacturing (ATVM) program to support the development of an on-site processing facility at the Rhyolite Ridge Lithium-Boron Project in Esmeralda County, Nevada.

The investment, part of the LPO’s efforts to strengthen the nation’s critical mineral supply chain, will create hundreds of rural jobs, support American manufacturers and help rebalance the global supply of lithium and boron production and processing currently dominated by China and Turkey, respectively. The $996 million loan ($968 million principal and $28 million in capitalised interest) is a $268 million increase in loan principal from the January 2023 conditional loan commitment.

Once operational, Rhyolite Ridge will quadruple the nation’s current domestic lithium supply, power an estimated 370,000 electric vehicles per year, create an estimated 500 jobs during construction and 350 high paying jobs during its decades in operation and become the first new lithium mine in the United States in almost sixty years and first new boron mine in close to a century. The project will generate dual revenue from lithium and boron produced directly at the mine site and contribute to establishing a sustainable lithium loop in Nevada, ensuring the recycling and reuse of the critical minerals.

“The need for domestically sourced and processed lithium and boron has never been greater. The United States requires Rhyolite Ridge and more projects like it if we want secure domestic critical mineral production. It’s as simple as that,” said James Calaway, Executive Chairman of Ioneer. “We’re thrilled to provide these critical battery components to the American manufacturing supply chain.”

“Rhyolite Ridge is fully permitted and construction ready. This loan demonstrates the United States’ confidence in and importance of our lithium-boron mine project. Rhyolite Ridge will not only create new jobs in Nevada but foster innovation across the country,” said Bernard Rowe, Managing Director, Ioneer. “Today’s announcement is the culmination of a rigorous and yearslong process with our federal, state, local and Tribal partners. Ioneer looks forward to bringing these urgently needed materials to market and is proud to set the new standard for modern mining operations and community engagement.”

Due to the deposit’s unique hard rock minerology, Ioneer will limit its operational footprint by avoiding the use of evaporation ponds and eliminate half of all water use compared to brine operations of similar size. The project will curtail its carbon footprint as its steam-powered facility will operate independently from the Nevada energy grid. The state-of-the-art processing facility will recycle half of all the water used. Its on-site location will reduce the need to transport materials across oceans, saving time and reducing costs, and kickstart wholistic supply chain investment in mineral production and processing in the United States.

The loan marks the conclusion of eight years of focused work across environmental, permitting, geology, and engineering. Ioneer engaged with DOE LPO for more than three years and transaction timing was primarily driven by receipt of a positive Record of Decision from the Department of Interior, which Ioneer received in October 2024.

Key Terms of DOE ATVM Loan

Loan Amount	$996 million Principal: $968 million Capitalised interest during construction: $28 million
Interest Rate	U.S. Treasury Rate Interest rate is fixed from the date of each advance for the term of the loan at the applicable long-dated U.S. Treasury rate
Tenor	20 years
Other Key Terms	Customary covenants and events of default for a project finance loan facility Customary conditions precedent to advances for a project finance loan facility

Conditions precedent to first loan funding include closing Sibanye-Stillwater Joint Venture (JV), securing necessary additional required funding and a project finance model bring down.

Next Steps

• Finalise updated resource/reserve and financial estimates
• Close conditional Sibanye-Stillwater JV agreement to fund $490 million for a 50% share of the Rhyolite Ridge Project
• Procure and close additional required funding (50:50 basis with JV partner)
• Make a “Final Investment Decision”
• Construction targeted for later in 2025 and is expected to take approximately 36 months including procurement of long-lead items
• First Production targeted for 2028

Transaction Advisers

Ioneer's financial adviser is Goldman Sachs, and its legal adviser is Vinson & Elkins.

This ASX release has been authorised by Ioneer Managing Director, Bernard Rowe.

About Ioneer

Ioneer Ltd is an emerging lithium–boron producer and the 100% owner of the Rhyolite Ridge Lithium-Boron Project. Rhyolite Ridge is the only known lithium-boron deposit in North America, one of only two known such deposits in the world and a linchpin project in Nevada’s burgeoning Lithium Loop. Once operational, the low-cost, world-class project is expected to power upward of 50 million electric vehicles and will instantly become a globally significant source of critical materials.

In October 2024, Ioneer received the final federal permit for the project from the Bureau of Land Management, concluding the formal federal permitting process which began in early 2020. Ioneer signed separate offtake agreements with Ford Motor Company and Prime Planet & Energy Solutions (joint venture between Toyota and Panasonic) in 2022 and Korea’s EcoPro Innovation in 2021.

In September 2021, Ioneer entered into an agreement with Sibanye-Stillwater where, following the satisfaction of conditions precedent, Sibanye-Stillwater will acquire a 50% interest in the Project, with Ioneer maintaining a 50% interest and retaining the operational management responsibility for the joint venture.

To learn more about Ioneer, visit www.Ioneer.com/investors.

Important notice and disclaimer

Forward-looking statements

This announcement contains certain forward-looking statements and comments about future events, including Ioneer’s expectations about the Project and the performance of its businesses. Forward looking statements can generally be identified by the use of forward-looking words such as ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’ and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, the Conditional Commitment, financing plans, future earnings or financial position or performance are also forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward-looking statements will not be achieved. Forward-looking statements are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. Forward looking statements involve known and unknown risks, uncertainty and other factors which can cause Ioneer’s actual results to differ materially from the plans, objectives, expectations, estimates, and intentions expressed in such forward-looking statements and many of these factors are outside the control of Ioneer. Such risks include, among others, uncertainties related to the finalisation, execution, and funding of the DOE financing, including our ability to successfully negotiate definitive agreements and to satisfy any funding conditions, as well as other uncertainties and risk factors set out in filings made from time to time with the U.S. Securities and Exchange Commission and the Australian Securities Exchange. As such, undue reliance should not be placed on any forward-looking statement. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward-looking statements, forecast financial information or other forecast. Nothing contained in this announcement, nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Ioneer.

Except as required by law or the ASX Listing Rules, Ioneer assumes no obligation to provide any additional or updated information or to update any forward-looking statements, whether as a result of new information, future events or results, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250117906869/en/

United States Investor Relations

Chad Yeftich

ir@ioneer.com



Media Relations (USA)

Daniel Francis, FGS Global

daniel.francis@fgsglobal.com



Australia Investor Relations

Ian Bucknell

ir@ioneer.com



Media Relations (Australia)

Peter Taylor, NWR Communications

peter@nwrcommunications.com.au

Source: Ioneer Ltd

FAQ

When will Ioneer's Rhyolite Ridge project begin production of lithium and boron?

Production at the Rhyolite Ridge project is targeted to begin in 2028, following an expected 36-month construction period starting in late 2025.

How much will the DOE loan provide to IONR's Rhyolite Ridge project?

The DOE loan will provide $996 million, consisting of $968 million in principal and $28 million in capitalized interest.

How many electric vehicles will IONR's Rhyolite Ridge project support annually?

The Rhyolite Ridge project is expected to support approximately 370,000 electric vehicles per year once operational.

How many jobs will IONR's Rhyolite Ridge project create?

The project will create approximately 500 jobs during construction and 350 high-paying permanent positions during operations.

What are the terms of IONR's DOE loan for Rhyolite Ridge?

The loan has a 20-year tenor with interest rates fixed at the U.S. Treasury Rate, with customary covenants and conditions for a project finance facility.