Ioneer Ltd, a lithium-boron producer, and EcoPro Innovation Co Ltd, a South Korea-headquartered pioneer in battery-grade lithium hydroxide conversion, have entered into a Research and Development (R&D) Memorandum of Understanding (MOU).
This strategic alliance aims to explore the commercial viability of lithium clay resources found at Ioneer’s Rhyolite Ridge Lithium-Boron project for the production of refined lithium materials catering to the US electric vehicle (EV) battery supply chain.
In an ASX announcement, Ioneer said its Rhyolite Ridge project boasts three distinct styles of lithium mineralisation.
While the initial project phase (Stage 1) primarily concentrates on searlesite mineralisation, Ioneer said the potential of lithium clay mineralisation remains unexplored but promising.
Stage 1 is currently in the final stages of the US federal review process and is poised to produce approximately 20,600 tonnes of lithium carbonate alongside about 174,400 tonnes of boric acid annually throughout its projected 26-year operational lifespan.
The MOU signed by Ioneer and EcoPro seeks to harness the untapped potential of lithium clay, potentially adding further production.
James Calaway, Ioneer executive chairman, expressed optimism about the partnership with EcoPro, highlighting its ability to bolster Rhyolite Ridge mineralisation and create new financial avenues for investment while reinforcing their core commitment to the project.
“The ultimate goal of EcoPro and Ioneer is to increase the supply of refined lithium materials for the U.S. EV supply chain and create hundreds of good-paying jobs in Nevada and beyond,” Calaway noted.
Anthony Kim, president of EcoPro Innovation, emphasised the complex nature of lithium extraction technology, citing the need to effectively eliminate impurities.
“EcoPro Innovation has an original patent for lithium extraction from waste batteries and launched its business in EcoPro Group. EcoPro Innovation is a technology-competitive company with a number of source patents in hydromet processes. We will perform well as soon as possible to gain the upper hand from other competitors,” Kim remarked.
As part of the new agreement, EcoPro has committed to fund and establish a commercial-scale refining plant specifically designed for processing lithium clay sourced from Rhyolite Ridge.
The lithium clay raw material will be supplied to EcoPro at no cost, with profits from the refining plant’s operation to be equally divided between EcoPro and Rhyolite Ridge.
A jointly developed Project Committee will oversee the implementation of the MOU.
Upon the successful launch of Stage 1 at Rhyolite Ridge, the US will witness a fourfold increase in lithium production, consequently contributing to a more balanced global boric acid market.
Pending the completion of the U.S. federal permitting process, construction at Rhyolite Ridge is expected to commence in 2024.
Funding for the project is secured through conditional commitments, including USD 490 million in equity from Sibanye-Stillwater and a USD 700 million conditional loan from the US Department of Energy’s Loan Programs Office.
Lithium production is anticipated to commence in 2026 as the project unfolds.
