Key takeaways
- Ioneer secured a $700 million loan commitment from the U.S Department of Energy.
- The company still has to get final approval before mining can begin.
- Ford and Toyota have made short-term deals to have access to the lithium mined.
News of Ioneer Lithium reaching a $700 million loan commitment for a new plant in Nevada sent its stock price soaring. However, the excitement quickly faded as investors realized there was still a long way before it was operational. Here are the agreement’s details and how it impacts the electric vehicle space, as well as investors in clean tech.
Details of the agreement
On Jan. 13, 2022, Ioneer received conditional approval for a $700 million loan from the U.S. Department of Energy (DOE) to construct a lithium mining project at Rhyolite Ridge in Nevada. The Loans Program Office (LPO) of the DOE is offering the loan to help secure the domestic production of lithium batteries for electric vehicles and other uses. The Biden-Harris administration is seeking to boost the mining and processing of the materials needed to create a stable, U.S.-based supply chain for lithium-ion batteries.
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