Ioneer (ASX:INR) and Element 25 (ASX:E25) have secured funding from the US Department of Energy (DOE) to expedite domestic critical and battery minerals production.
Under the DOE’s Advanced Technology Manufacturing program, Ionner has closed a US$996 million ($1.6 billion) loan to support the development of an onsite processing facility at the Rhyolite Ridge Lithium-Boron Project in Nevada, US.
The US$996 million loan is a US$268 million increase in loan principal from the January 2023 conditional loan commitment.
Ioneer, which has a market capitalisation of $400.46 million, says once the project is operational, Rhyolite Ridge will quadruple US domestic lithium supply, power an estimated 370,000 EVs per year, as well as create 500 jobs during construction and 350 high-paying jobs.
In addition, the investment will create hundreds of rural jobs, support American manufacturers, and help rebalance the global supply of lithium and boron production which is currently dominated by China and Turkey, respectively.
Ioneer now plans to finalise an updated resource and reserve, as well as financial estimates, alongside a conditional Sibanye-Stillwater joint venture agreement to fund $490 million for a 50% share of the project.
Further, the company will procure and close additional required funding and make a final investment decision. Once completed, Ioneer intends to begin construction this year which is expected to take 36 months, ahead of first production which is targeted for 2028.
Meanwhile, Element 25 has been awarded US$166 million ($267.54 million) from the US Department of Energy under the Battery Materials Processing Grant program.
The funding will support the construction of the company’s proposed battery-grade high-purity manganese sulphate monohydrate (HPMSM) facility in the US.
The project will comprise a 21,000m2 HPMSM refining facility that aims to produce 71,650 tonnes of HPMSM per year. The ore will be sourced from the company’s Butcherbird Mine in Western Australia and shipped to Louisiana.
Element 25, which has a market capitalisation of $59.37 million, intends to prioritise local workforce recruitment, including training programs and engaging local suppliers. The project is expected to generate 400 jobs during construction and 144 full-time ongoing roles once production begins.
The company notes this latest grant, which is in addition to the US$115 million funding secured from General Motors (NYSE:GM) and Stellantis (NYSE:STLA), forms a key part to Element 25’s strategy for the facility.
As such, the project execution team will work to finalise the project implementation schedule.
Write to Aaliyah Rogan at Mining.com.au
Images: Ioneer
