Photo: Planet Proof YouTube
While a federal judge in Reno moves toward a decision that will impact the development of the Thacker Pass lithium mining project in Northern Nevada, another mining project in the resource-rich state known as the Silver State has been given a sizable loan by the U.S. Energy Department.
Australia-based ioneer is poised to receive a U.S. Government loan of up to $700 million (645 million euro) to build its lithium mining project situated between Reno and Las Vegas near the California border.
The loan based on some conditions is the first of its kind by the federal government for the development of lithium mining operations and underscores the administration's concerns revolving around the supply of lithium; a vital metal used in the production of electric vehicle batteries.
"The government is sending a strong signal that it's time to let us go build this mine," James Calaway, ioneer's executive chairman, told Reuters. "We now have the capital to build a very important facility to supply lithium for the United States."
A more than two-year review by the department's Advanced Technology Vehicles Manufacturing (ATVM) program office paved the way for the loan that will be used to build a lithium carbonate processing facility at Rhyolite Ridge near the lithium mining operations of Albemarle Corporation.
In an interview, Jigar Shah, head of the Energy Department's Loan Programs Office, called the Rhyolite Ridge project a step forward in U.S. plans to boost lithium production. He added that he is "more than excited about the remaining pipeline" of companies that have applied for ATVM loans, according to Reuters.
A 2020 study determined the cost of the project would be in the neighborhood of $785 million (723 million euro) but that number has surely increased based on the current inflationary climate. When complete, the mine is expected to produce enough lithium for 370,000 electric vehicles per year.
As with all government loans, the money being offered to ioneer in the form of a ten-year fixed-rate loan does come with some conditions. It seems the land targeted for the facility is currently occupied by a rare and endangered flower called Tiehm's buckwheat, according to the U.S. Fish and Wildlife Service. Therefore the loan is contingent upon ioneer successfully completing an environmental review.
Calaway believes the best chance for the plant's survival is with the company taking care of it. The existence of the plant did not come out of nowhere, as both the federal agency and ioneer knew of its presence, but believed the process could move forward, as a result of some changes made by ioneer.
However, Patrick Donnelly from the environmental group the Center for Biological Diversity (CBD), which opposes the mine, was quoted as saying, "The mine the Department of Energy thinks it's funding is not the mine that's going to get built."
The loan based on some conditions is the first of its kind by the federal government for the development of lithium mining operations and underscores the administration's concerns revolving around the supply of lithium; a vital metal used in the production of electric vehicle batteries.
"The government is sending a strong signal that it's time to let us go build this mine," James Calaway, ioneer's executive chairman, told Reuters. "We now have the capital to build a very important facility to supply lithium for the United States."
A more than two-year review by the department's Advanced Technology Vehicles Manufacturing (ATVM) program office paved the way for the loan that will be used to build a lithium carbonate processing facility at Rhyolite Ridge near the lithium mining operations of Albemarle Corporation.
In an interview, Jigar Shah, head of the Energy Department's Loan Programs Office, called the Rhyolite Ridge project a step forward in U.S. plans to boost lithium production. He added that he is "more than excited about the remaining pipeline" of companies that have applied for ATVM loans, according to Reuters.
A 2020 study determined the cost of the project would be in the neighborhood of $785 million (723 million euro) but that number has surely increased based on the current inflationary climate. When complete, the mine is expected to produce enough lithium for 370,000 electric vehicles per year.
As with all government loans, the money being offered to ioneer in the form of a ten-year fixed-rate loan does come with some conditions. It seems the land targeted for the facility is currently occupied by a rare and endangered flower called Tiehm's buckwheat, according to the U.S. Fish and Wildlife Service. Therefore the loan is contingent upon ioneer successfully completing an environmental review.
Calaway believes the best chance for the plant's survival is with the company taking care of it. The existence of the plant did not come out of nowhere, as both the federal agency and ioneer knew of its presence, but believed the process could move forward, as a result of some changes made by ioneer.
However, Patrick Donnelly from the environmental group the Center for Biological Diversity (CBD), which opposes the mine, was quoted as saying, "The mine the Department of Energy thinks it's funding is not the mine that's going to get built."
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