Ioneer Ltd (ASX:INR, Nasdaq:IONR) has reported significant progress in its quarterly activities report for the period ending March 31, 2025. The company successfully closed an upsized US$996 million loan from the U.S. Department of Energy (DOE) to accelerate domestic critical mineral production at its Rhyolite Ridge Lithium-Boron Project in Nevada. The loan, which increased from an initial $728 million commitment, underscores the strategic importance of establishing a secure domestic supply chain for lithium and boron, which are essential components for electric vehicle batteries.
In addition to the DOE loan, Ioneer announced a 45% increase in the Rhyolite Ridge South Basin Mineral Resource Estimate, now totaling 510 million tonnes containing 3.97 million tonnes of lithium carbonate equivalent and 14.66 million tonnes of boric acid equivalent. The updated resource estimate, derived from new drill data within the fully permitted project boundary, is expected to strengthen the project’s economics by converting inferred resources to measured and indicated categories, ultimately boosting the ore reserve.
Despite these advancements, Ioneer faced a setback with Sibanye-Stillwater’s decision to withdraw from the proposed project joint venture. The Unit Purchase and Subscription Agreement was terminated, prompting Ioneer to re-engage Goldman Sachs and initiate a strategic partnering process to secure a new equity partner. The company anticipates commencing this process in Q2 2025, following the release of the updated reserve estimates.
The updated project timeline anticipates a release of reserves and project economics in May 2025, with a targeted commencement of the strategic partner process in Q2 2025. Construction is estimated to take approximately 36 months, subject to lead times and order placements. A final investment decision (FID) is dependent on the outcomes of the strategic partnering process and the requirement to refresh project economics.
Ioneer is navigating a complex lithium market, where prices are expected to remain subdued in 2025 due to supply outpacing demand. Benchmark Minerals forecasts a market surplus of 83kt LCE in 2025. However, midterm prices are predicted to rebound by 2029-2030, driven by a market deficit. The company is also focused on environmental stewardship, maintaining compliance with state permits and continuing Tiehm’s buckwheat conservation efforts. Community and Tribal Nations engagement remains a priority, with a comprehensive Development Agreement completed with Esmerelda County.