Ioneer ( NASDAQ: IONR ) ( OTCPK:GSCCF ) said Friday the U.S. Department of Energy issued a conditional commitment for as much as $700M to help finance the construction of its Rhyolite Ridge Lithium-Boron project in Nevada.
Rhyolite Ridge is the most advanced undeveloped U.S. lithium project, and is a prospective supplier to Ford and Toyota that could produce enough lithium for 370K electric vehicles annually.
The proposed DoE loan coupled with Sibanye-Stillwater's ( NYSE: SBSW ) expected equity contribution to secure a 50% stake in the project, is anticipated to fund a substantial part of the preliminary capital spending estimate, representing a significant step towards a complete funding package for Rhyolite Ridge.
Ioneer ( IONR ) ( OTCPK:GSCCF ) expects to get U.S. approvals that will allow the company to start building the project next year with the aim to start producing lithium in 2026.
Ioneer's ( IONR ) ( OTCPK:GSCCF ) assets are unique in that Rhyolite Ridge has the potential to be quite profitable thanks to the local reserves containing both boron and lithium, Another Mountain's Rock Investing writes in an analysis published last summer on Seeking Alpha .
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DoE backs Ioneer's Nevada lithium project with $700M loan offer