U.S. Approves Rhyolite Ridge Lithium Mine

By Ernest Scheyder
(Reuters) – The U.S. Interior Department has given final approval to Ioneer's Rhyolite Ridge lithium mine in Nevada, the first domestic lithium source permitted by President Joe Biden's administration. This mine will supply lithium for Ford and other electric vehicle manufacturers.

The approval ends a six-year review process during which the fate of a rare flower found at the site led to tensions between climate mitigation efforts and biodiversity protection.

This permit, expected by year's end, comes alongside Biden’s efforts to boost critical minerals production, aiming to reduce reliance on China. The project unlocks a $700 million loan from the U.S. Department of Energy and a $490 million investment from Sibanye Stillwater to fund the mine.

Laura Daniel-Davis, acting deputy secretary of the Interior Department, emphasized the project's importance for the clean energy transition. The Bureau of Land Management issued the mine's permit, including protections for the local ecosystem and job creation in the rural region.

Located 225 miles north of Las Vegas, the project can power approximately 370,000 EVs annually, with construction starting in 2024 and production by 2028. It could become one of the largest U.S. lithium producers along with Albemarle and Lithium Americas.

The U.S. Geological Survey has labeled lithium as a critical mineral for the economy and national security.

James Calaway, Ioneer's chairman, expressed pride in being the first U.S. lithium mine permitted under Biden's administration. The project will extract lithium and boron from clay and recycle half of the water used on-site, exceeding industry averages.

Ford and a Toyota-Panasonic joint venture have agreed to purchase lithium from Rhyolite Ridge.

Endangered Flower

Rhyolite Ridge is also home to the Tiehm's buckwheat flower, declared endangered in 2022 and found only at the mine site. The Center for Biological Diversity and conservation groups oppose the project due to risks to this flower.

The Interior Department claimed that significant protections for the plant were integrated into the permit review, including revised mine designs and greenhouse propagation efforts. Officials believe the mine will not harm the flower.

Calaway stated, "We've come up with a thoughtful plan that protects this plant while ensuring a stable supply of lithium for America." Earlier, over 17,000 flowers died near the site, leading to accusations against Ioneer, who denied wrongdoing, while the government attributed the deaths to thirsty squirrels.