Nevada lithium mine gets $700M conditional loan from Energy

RENO, Nev. (AP) — The U.S. Department of Energy on Friday announced a conditional loan of $700 million to an Australian mining company to pursue a proposed lithium project in Nevada, as the U.S. seeks domestic supplies for a key component in electric vehicle batteries.

The move ups the ante in what's already a high-stakes battle over President Joe Biden's energy agenda and conservationists fighting to protect an endangered wildflower found only at the proposed mine site on a high desert ridge halfway between Reno and Las Vegas.

Ioneer Ltd. has hoped to begin mining at Rhyolite Ridge by 2026 in Esmerelda County. The Energy announcement said the site could produce enough lithium to support production of about 370,000 electric vehicles annually for decades.

The loan would be the latest project to demonstrate the Biden administration's commitment to strengthen the nation's battery supply chain, electrify the transportation sector and cut reliance on fossil fuels and foreign supplies of raw materials, the Department of Energy said.

Jigar Shah, director of DOE's Loans Programs Office, said his office is “excited to further develop an environmentally responsible U.S. supply chain for critical materials.”

“Rhyolite Ridge is a major step towards bolstering domestic lithium production for clean energy technologies,” he said in a statement.

James Calaway, executive chairman of Ioneer, said the conditional commitment “highlights the project's strategic role in strengthening the nation's critical mineral supply chain in providing a secure, sustainable and reliable domestic source of lithium for the growing vehicle ecosystem.” Bernard Rowe, Ioneer's managing director, said it came after 23 months “of discussion and due diligence” by Energy.

But the project still faces a...