SOURCE: Mining.com | September 24, 2024
The US Bureau of Land Management (BLM) cleared one of the final regulatory hurdles for ioneer’s (ASX: INR) Rhyolite Ridge lithium mine in Nevada, a project that would be a key supplier of the electric vehicle battery metal to the local auto industry.
The proposed lithium mine, about 225 miles (362 km) north of Las Vegas, contains one of the largest sources of lithium in North America. It could produce enough of the metal to power nearly 370,000 electric vehicles per year.
The agency’s decision follows a review process spanning over more than six years, and is part of Washington’s ongoing efforts to strengthen domestic critical minerals production and counteract China’s dominance of battery mentals. If granted final approval, Rhyolite Ridge would be the first lithium project permitted by the Joe Biden administration.
Shares in ioneer soared on the news, closing more than 15% higher to A$0.19 each on the Australian Stock Exchange (ASX). This leaves the company with a market capitalization of A$432.42 million ($294m).
The Rhyolite Ridge asset is also home to a rare flower, which has given conservation groups arguments to oppose the project, highlighting the complexity of trying to balance the protection of biodiversity and the need for metals to reduce the globe’s emissions.
BLM officials said they worked closely with local, state and tribal governments on the environmental review announced Thursday.
Once it is published in the Federal Register, the public will have 30 days to submit comments. After the review period, the BLM will publish a final environment impact analysis, with a final decision — essentially a mining permit — to be issued within 30 days after that.
The Rhyolite Ridge lithium project “represents another step by the Biden-Harris administration to support the responsible, domestic development of critical minerals to power the clean energy economy,” the BLM said in statement.
Laura Daniel-Davis, Acting Deputy Secretary of the Interior, noted the proposed mine exemplifies what can be achieved when industry, states, tribes, and stakeholders collaborate to ensure prompt consideration and adaptation of projects that meet the US energy needs while respecting cultural and environmentally sensitive areas.
Rhyolite Ridge is the only known lithium-boron deposit in North America and one of only two known such deposits in the world.
Breaking away from imports
Lithium is one of 50 minerals identified as critical by the U.S. Geological Survey, which considers importance of the mineral to the country’s economy and national security and the vulnerability of its supply chains. Lithium batteries are used extensively in the growing market for portable electronic devices, vehicles, and grid storage applications.
The US government has already backed another lithium mine in Nevada. Lithium Americas’ (TSX: LAC) (NYSE: LAC) Thacker Pass project is targeting 80,000 tonnes per annum of battery-quality lithium carbonate (Li2CO3) production capacity in two phases of 40,000 tonnes. Phase 1 production is expected to commence in the second half of 2026. The project is expected to create 1,000 jobs during construction and 500 jobs during operations.
US mining policy is currently administered through multiple agencies, including the BLM, the Fish and Wildlife Service, and the Mine Safety and Health Administration.
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