Australian lithium company Ioneer (NASDAQ: IONR) has secured a US Department of Energy loan of close to $996 million (AU$1.6 billion). The financing, the largest ever granted to an Australian firm, reflects the United States’ growing urgency to compete with China’s dominance in critical minerals.

Recent statements from the Energy Department confirm that such measures are intended to shore up domestic supply chains for technologies ranging from electric vehicles to advanced military systems.

The 20-year loan will be directed toward the development of an on-site lithium-boron processing facility at Ioneer’s Rhyolite Ridge project in Esmeralda County, Nevada. This site, located roughly 360 kilometers north of Las Vegas, promises to become the first new lithium mine in the United States in nearly six decades and the first new US boron mine in almost a century.

“Rhyolite Ridge will not only create new jobs in Nevada but foster innovation across the country,” said Bernard Rowe, Ioneer’s managing director, in a recent statement. He added that the substantial federal backing demonstrates “the United States’ confidence in and importance of lithium production.”

Once operational, the mine is expected to quadruple America’s current lithium supply, generating enough material to power an estimated 370,000 electric vehicles annually.

Although the project now enjoys strong government support, Rhyolite Ridge faced notable scrutiny from environmental advocates. The Center for Biological Diversity has long claimed that the mine’s construction could threaten the continued existence of Tiehm’s buckwheat, a rare flower found in the region. While federal approvals are still subject to final environmental reviews, the Biden administration effectively greenlit Rhyolite Ridge just weeks before a critical election cycle in Nevada, underscoring the federal government’s prioritization of strategic minerals.

According to Ioneer, it has implemented thorough environmental safeguards and remains committed to “setting the new standard for modern mining operations and community engagement.” The company says it has worked closely with regulators to mitigate any harmful impacts, though additional protective measures are expected to be unveiled as the project moves forward.

Rhyolite Ridge’s anticipated output extends beyond lithium into boron, another material crucial for multiple industrial applications. By combining both minerals, Ioneer’s Nevada facility could become a central pillar in the United States’ push toward self-reliance for vital raw materials.

Ioneer expects to generate 500 construction jobs and 350 permanent positions once the project is up and running, reflecting a broader economic upside for the region. Publicly available filings indicate that Ioneer aims to begin production as soon as regulatory clearances are secured, with a projected timeline that aligns with mounting demand from carmakers transitioning to electric vehicle lines.

Ioneer last traded at $5.23 on the NASDAQ.

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