Emerging lithium-boron producer Ioneer (ASX:INR) has signed a commercial offtake agreement partnership with energy storage company Dragonfly Energy Holdings (NASDAQ:DFLI) for material produced from the Rhyolite Ridge project in Nevada.
Ioneer says the partnership will strengthen US battery supply chains and invest in the production of Nevada-sourced lithium.
The company reports the agreement with Dragonfly Energy is expected to pave the way for continued investment in Nevada and provide Dragonfly with a domestic supply of lithium carbonate to be used in lithium iron phosphate battery cells.
Under the agreement, Ioneer will supply Dragonfly with a varying amount of lithium carbonate after meeting previously announced offtake commitments.
The agreement spans 3 years, starting when Ioneer notifies Dragonfly that Rhyolite Ridge has been fully completed and commissioned in accordance with the engineering, procurement, and construction (EPC) contract applicable to the project and can produce and deliver product to customers with annual commitments to purchase more than 3,000 tonnes per annum.
Commenting on the offtake agreement, Ioneer Chief Executive Officer (CEO) and Managing Director Bernard Rowe says: “As the world’s demand for lithium in electric vehicle and energy storage increases, the need to secure a reliable, sustainable, and domestic source of lithium is critical. Ioneer is pleased to partner with Dragonfly and deliver these critical materials from Rhyolite Ridge.”
“As the world’s demand for lithium in electric vehicle and energy storage increases, the need to secure a reliable, sustainable, and domestic source of lithium is critical”
Dragonfly Energy Holdings CEO Denis Phares says: “Deploying our innovative dry powder coating cell manufacturing process is exciting. But ultimately, cell production is only made possible by access to lithium. This agreement gives us the opportunity to bring our entire manufacturing process not only to the US but to Nevada, from mining to manufacturing to recycling.”
Ioneer reports the agreement demonstrates the company’s value to the US supply chain and notes Rhyolite Ridge is one of the ‘most sophisticated’ underdeveloped lithium projects in the country. The company also notes the project is one of few in the world where lithium will be extracted and refined locally.
Nevada Governor Joe Lombardo states he hopes to see more agreements like the one signed between Ioneer and Dragonfly in the future.
“This agreement between Dragonfly Energy and Ioneer, and hopefully more like it in the future, are vital to our economy as we work to develop this new industry, secure Nevada’s energy independence, and close the lithium gap.
In the future, we hope to see more Nevada companies creating innovative partnerships like this one, which will help strengthen our economy and demonstrate how Nevada is the lithium capital of North America.”
Once federal permitting and construction are complete, Ioneer reports Rhyolite Ridge will quadruple the US’ current lithium output. The company also reports this agreement moves Dragonfly closer to achieving its mission of establishing a vertically integrated lithium battery cycle from mining to cell and pack production and to recycling.
Ioneer is an emerging lithium-boron producer focused on developing the Rhyolite Ridge Project in Nevada, US. The company says the project is one of only 2 known lithium-boron deposits in North America.
In January 2023, Ioneer received a conditional commitment from the US Department of Energy Loan Programs Office for up to $700 million of debt financing. The company also has separate offtake agreements with Ford Motor Company (NYSE:F), and PPES, which is a joint venture between Toyota (TYO:7203) and Panasonic (TYO:6752), as well as Korea’s EcoPro Innovation.
Dragonfly Energy Holdings is a Reno-based supplier of deep-cycle lithium-ion batteries focused on developing innovative technologies and manufacturing processes for the energy storage industry.
Images: iStock
