RENO, Nev. (AP) — The U.S. Department of Energy announced a $700 million conditional loan on Friday to an Australian mining company to pursue a lithium project that is still facing roadblocks. environment in Nevada when US seeks domestic supply for a key component in electric vehicle batteries.
The move elevates the already tense battle over President Joe Biden’s energy program and conservationists fighting to protect the endangered wildflower found only locally. proposed mining site on a high ridge in the middle of the desert between Reno and Las Vegas.
Ioneer Ltd. had hoped to begin mining at Rhyolite Ridge in 2026 in Esmerelda County. Energy’s announcement says the site can produce enough lithium to support the production of about 370,000 electric vehicles annually for decades.
The Department of Energy said the loan would be the latest project to demonstrate the Biden administration’s commitment to strengthening the nation’s battery supply chain, electrifying the transportation sector and cutting dependence on fossil fuels. fossil fuels as well as foreign sources of raw materials.
Jigar Shah, director of the DOE’s Office of Lending Programs, said his office is “delighted to further develop the environmentally responsible U.S. supply chain for critical materials.”
“Rhyolite Ridge is an important step towards boosting domestic lithium production for clean energy technologies,” he said.
James Calaway, Ioneer’s executive chairman, said the conditional commitment “highlights the project’s strategic role in strengthening the nation’s vital mineral supply chain for a safe domestic supply of lithium.” safe, sustainable and reliable for the growing vehicle ecosystem.” Bernard Rowe, chief executive officer of Ioneer, said it came after 23 months of “discussion and due diligence” by Energy and “represents an important milestone” for the project.
But the project still faces a significant legal and regulatory challenge in developing a mining operation plan that will provide adequate protection for the mining industry. Nevada wildflowers are in danger of extinctionTiehm’s buckwheat.
The United States Fish and Wildlife Service said when it declared the species endangered last year that it was on the verge of extinction and that the mining project posed the greatest threat to its survival. of this species.
In the past, conservationists have sued to protect the 6-inch-tall plant with its yellow flowers and vowed to do so again if necessary on Friday.
“This appears to be a fairly transparent attempt by the Biden administration to build economic and political momentum for the project in an effort to bring the CDC under control,” said Patrick Donnelly, Great Basin director of Great Basin. United States Fish and Wildlife Service and the Endangered Species Act”. Center for Biodiversity.
“Ioneer will have to completely overhaul the design of this mine if they want to be licensed,” he said in an email to the Associated Press. “We have sued or sued Tiehm’s buckwheat four times already, and we will not back down until all the buckwheat is saved.”
The Department of Energy announcement said the Ioneer project is working to minimize the impact on the plant. It said the loan is contingent on completing an environmental impact statement under the National Environmental Policy Act (NEPA).
The Biden administration has planned to build half a million charging stations for electric vehicles, a key part of its infrastructure goals. That effort and the growth of electric vehicle companies like Tesla will require more lithium to make batteries.
Although lithium reserves are widely distributed across the globe, the United States is home to only one active lithium mine, in Nevada. Worldwide demand for lithium is around 350,000 tons (317,517 tons) in 2020, but the industry estimates project demand will increase sixfold by 2030.
Shah said large projects like this will be carried out step by step.
“Obviously we haven’t committed capital to the project,” Shah said Friday in a phone interview with the AP. “They still have to meet the conditions. But in this way, it gives their equity investors some comfort that they should continue to invest in the project.”
Senator Jacky Rosen, D-Nev., is among the project’s supporters.
“I applaud the Department of Energy for providing this loan to help support the extraction and processing of Nevada’s key minerals, help reduce greenhouse gas emissions, and contribute to job creation in our state.” she said in a statement.
Lithium is the basis for the most common battery technology in electric vehicles and battery-powered electrical storage systems. But many engineers are working on alternative battery chemistries because lithium is involved in quarrying, which means a great deal of disturbance to the environment.
Ioneer is a lithium-focused company based in New South Wales, Australia and Reno.
Another new lithium mining project under development in the United States is proposed for Thacker Pass by Lithium Americas near the Oregon line. That northern Nevada mine will supply millions of tons of lithium, but it also faces regulatory challenges. Native American tribes have argued that it lies on sacred ground near where dozens of their ancestors were massacred in 1865.
