US closer to greenlighting ioneer’s Nevada lithium mine

The U.S. Bureau of Land Management (BLM) cleared on Thursday one of the final regulatory hurdles for ioneer’s (ASX: INR) Rhyolite Ridge lithium mine in Nevada, a project that would be a key supplier of the electric vehicle battery metal to the local auto industry.

The proposed lithium mine, about 362 km north of Las Vegas, contains one of the largest sources of lithium in North America. This means it could produce enough of the metal to power nearly 370,000 electric vehicles per year. 

Shares in ioneer soared on the news, closing more than 15% higher to A19¢ each on the Australian Stock Exchange. This leaves the company with a market capitalization of A$432.42 million or about US$294 million.

The Rhyolite Ridge asset is also home to a rare flower, which has given conservation groups arguments to oppose the project, highlighting the complexity of trying to balance the protection of biodiversity and the need for metals to reduce the globe’s emissions.

BLM officials said they worked closely with local, state and tribal governments on the environmental review announced today.

Once it is published in the Federal Register, the public will have 30 days to submit comments. After the review period, the BLM will publish a final environment impact analysis, with a final decision — essentially a mining permit — to be issued within 30 days after that.

The Rhyolite Ridge lithium project “represents another step by the Biden-Harris administration to support the responsible, domestic development of critical minerals to power the clean energy economy,” the BLM said in statement.

Laura Daniel-Davis, Acting Deputy Secretary of the Interior, noted the proposed mine exemplifies what can be achieved when industry, states, tribes, and stakeholders collaborate to ensure prompt consideration and adaptation of projects that meet the US energy needs while respecting cultural and environmentally sensitive areas.

Breaking away from imports

Lithium is one of 50 minerals identified as critical by the U.S. Geological Survey, which considers importance of the mineral to the country’s economy and national security and the vulnerability of its supply chains. Lithium batteries are used extensively in the growing market for portable electronic devices, vehicles, and grid storage applications. 

The U.S. government has already backed another lithium mine in Nevada. Lithium Americas’ (TSX: LAC; NYSE: LAC) Thacker Pass project is targeting 80,000 tonnes per annum of battery-quality lithium carbonate (Li2CO3) production capacity in two phases of 40,000 tonnes. Production is expected to commence in the second half of 2026. The project is expected to create 1,000 jobs during construction and 500 jobs during operations.

U.S. mining policy is currently administered through multiple agencies, including the BLM, the Fish and Wildlife Service, and the Mine Safety and Health Administration.