Ioneer Ltd. and EcoPro Innovation Co Ltd. signed a Research and Development Memorandum of Understanding Memorandum of Understanding. EcoPro will conduct research and development on the lithium clay resource ? one of three distinct styles of lithium mineralisation found at Ioneer?s Rhyolite Ridge Lithium-Boron project (Rhyolite Ridge).

The goal will be to develop a process to commercialise Rhyolite Ridge lithium clay to produce refined lithium materials for the U.S. EV battery supply chain. Stage 1 of Rhyolite Ridge focuses on searlesite (high lithium, high boron) mineralisation while the lithium clay mineralisation will be extracted and set aside. Stage 1 is in the final phase of U.S. federal review process.

For Stage 1, Ioneer will produce an annual average of approximately 20,600 tonnes of lithium carbonate alongside approximately 174,400 tonnes of boric acid per year during the mine?s 26-year life1. Any production from the activities contemplated by this MOU would be incremental. As part of the new agreement, EcoPro has agreed to fund and build a commercial-scale refining plant to develop lithium clay supplied from Rhyolite Ridge.

The lithium clay raw material would be supplied at no cost to EcoPro, and the profits from the commercial refining plant would be equally shared between EcoPro and Rhyolite Ridge. Under the agreement, the MOU will be managed by a jointly developed Project Committee. Once operational, Stage 1 of Rhyolite Ridge will quadruple the current U.S. supply of lithium and help to rebalance the global production of boric acid.

Upon anticipated completion of the U.S. federal permitting process, construction at Rhyolite Ridge, largely funded through the combination of conditional commitments of $490 million USD in equity from Sibanye-Stillwater and a $700 million USD conditional loan from the U.S. Department of Energy?s Loan Programs Office, is set to begin in 2024. Lithium production is expected to follow in 2026.