ioneer inks deal with NexTech Batteries for Rhyolite Ridge lithium offtake
ioneer managing director Bernard Rowe says Rhyolite Ridge will be “crucial” to building a domestic battery supply chain in the US.
Emerging lithium-boron miner ioneer (ASX: INR) has entered into an agreement with US-based lithium-sulphur battery technology developer NexTech Batteries for the sale of lithium carbonate and lithium hydroxide from its Rhyolite Ridge project in Nevada.
The agreement was secured by wholly-owned subsidiary ioneer USA Corporation and was was facilitated by Northern Nevada Development Authority.
ioneer’s lithium product will be used by NexTech to manufacture next generation solid-state batteries aimed at revolutionising the automotive industry, as well as for renewable energy and grid storage applications, portable electronics, drones/eVTOL (electric vertical take-off and landing) aircraft.
ioneer aims to produce upwards of 22,000 tonnes of lithium material per year from the project, located 365 kilometres from NexTech’s premises in Carson City.
Once production has commenced, the companies will consider the potential for the long-term supply of lithium carbonate and lithium hydroxide to NexTech.
Critical role
ioneer managing director Bernard Rowe said the agreement acknowledges Rhyolite Ridge’s critical role in the development of a domestic battery supply chain.
“As we focus on producing the materials needed for sustainable and clean technologies, it is important for companies like NexTech to develop and produce those technologies domestically and sustainably,” he said.
“This collaboration is supportive of Nevada’s clean energy strategy and is an example of how the state can lead the way to a more sustainable future, while creating jobs across the supply chain.”
Battery mission
NexTech chief executive officer Bill Burger said the company was pleased to partner with ioneer.
“ioneer is aligned with our mission of making batteries more affordable, more sustainable and safer through patented lithium-sulphur science which is poised to disrupt multiple industries,” he said.
“The fact that Rhyolite Ridge is located a short distance from our facility will also allow us to lower our supply chain carbon footprint, reduce dependence on foreign suppliers and create jobs right here in Nevada.”
Increased commitment
The NexTech deal follows a decision in February by ioneer’s offtake partner EcoPro Group to increase its lithium carbonate purchase commitment from Rhyolite Ridge from 2,000t per annum to 7000tpa.
The commitment is believed to represent 34% of annual lithium carbonate production from Rhyolite Ridge over the first three years of operation.