Home Industry Metals and Mining Biden Administration Greenligh...

Biden Administration Greenlights Rhyolite Ridge: Nevada's First Lithium Mine Project to Support EV Market

Metals and Mining

Business Honor
25 October, 2024

The approved project boosts U.S. lithium production, supporting electric vehicle battery needs and local jobs.

The Biden administration finally approved the construction of the Rhyolite Ridge lithium project in Nevada, marking the first lithium mine permitted under the current administration. The U.S. Department of the Interior announced the decision on Thursday, a landmark step toward augmenting domestic lithium production, a critical component for electric vehicle EV batteries. This approval puts the United States in the position of an emerging player in the global supply chain for lithium, which will fuel electric vehicle ambitions, underpinning less foreign sourcing.

The mine developed by Australian mining company Ioneer Ltd. is likely to be one of the most important lithium suppliers to big EV manufacturers, including Ford and a Toyota-Panasonic joint venture. Already, a project of this sort has been attracting significant investment, with a $700 million loan from the U.S. Department of Energy and a $490 million equity stake by Sibanye Stillwater, a multinational mining group.

The approval of the new lithium mine aligns well with Biden's agenda to expand the critical mineral supply needed for the clean energy transition and reduce dependence on imported lithium sources from countries like China. According to the U.S. Geological Survey, lithium has been referred to as a critical mineral for the economy of the nation and for national security. As the use of vehicles that are electrical increases, the demand for lithium is also expected to rise.

The project, Rhyolite Ridge, is located about 225 miles north of Las Vegas. That alone contains enough lithium to run about 370,000 electric vehicles per year. The interesting part is that it contains a kind of clay-like deposit with both lithium and boron and is the only mine in the world where those products are available commercially for industrial use. Ioneer will process its lithium derivatives in place, on-site at the mine, and has assured sustainable levels that match its standards: recycling half the water used, a level far above what the industry averages.

The mine, scheduled to start construction next year and with production set to begin in 2028, will create hundreds of jobs in rural Nevada and strengthen U.S. lithium production capabilities, ranking it with other U.S.-based lithium producers such as Albemarle and Lithium Americas.

The project's approval was supported by over six years of regulatory review, finding a balance between environmental concerns and the needs of mineral production.

Rhyolite Ridge also hosts Tiehm's buckwheat flower, a species of flora considered endangered. The Center for Biological Diversity, among others, manifested an objection on the grounds that the mine might be an actual threat to the survival of the flower. Although the U.S. Bureau of Land Management approved the mine with caveats: reconfigured design and plans for the construction of a greenhouse to help propagate the flower in a bid to reduce ecological impact.