The Biden administration has taken a significant step towards approving what could become one of the largest sources of lithium in the United States. On Thursday, they released a crucial environmental report for ioneer’s Rhyolite Ridge lithium mine, located in Nevada. This report marks the final stage in a lengthy review process that has spanned over six years and is part of Washington’s ongoing efforts to boost domestic production of critical minerals and reduce China’s dominance in this market. If approved, the Rhyolite Ridge mine would be the first lithium project to receive a permit under the Biden administration.
The U.S. Bureau of Land Management (BLM) has published a final environmental impact statement, which initiates a review period of at least 30 days before a record of decision which is essentially the mine’s permit that can be issued. Alongside this, the BLM has also released an opinion on the best methods to protect a rare flower species found at the mine site. This news has had a positive impact on ioneer’s stock, with shares jumping more than 12 per cent in New York trading.
The proposed Rhyolite Ridge mine is situated approximately 225 miles north of Las Vegas and has the potential to produce enough lithium to power around 370,000 electric vehicles annually. Major automotive companies have already shown interest in the project, with Ford Motor and a joint venture between Toyota and Panasonic agreeing to purchase lithium from the mine once it becomes operational.
Lithium has been designated as a critical mineral by the U.S. Geological Survey, recognising its importance to both the country’s economy and national security. In support of increasing domestic production, the U.S. Department of Energy made a commitment last year to provide ioneer with a loan of up to USD 700 million for the mine’s development, contingent on the company first obtaining the necessary permits.
However, the project faces a significant environmental challenge. The mine site is home to Tiehm’s buckwheat, a rare flower species that exists nowhere else on Earth and was declared endangered in 2022. This has led to opposition from conservation groups, particularly the Center for Biological Diversity (CBD), making the Rhyolite Ridge project a focal point in the debate over balancing biodiversity conservation with the urgent need to combat climate change.
To address these concerns, the BLM has worked closely with the U.S. Fish and Wildlife Service and ioneer to develop “significant protections for the plant.” These measures include modifications to the mine’s design and implementation of propagation efforts, such as constructing a greenhouse and hiring botanists. Tracy Stone-Manning, the BLM Director, emphasised the agency’s commitment to responsible stewardship of public lands while advancing clean energy goals.
Despite these efforts, the CBD expressed disappointment with the government’s approach, arguing that it undermines public engagement in the decision-making process. Patrick Donnelly, representing the CBD, reaffirmed the organisation’s determination to continue fighting for the protection of the endangered wildflower.
The 30-day review process for the environmental report is a standard part of the federal permitting procedure. Bernard Rowe, ioneer’s CEO, views the report as a testament to the company’s willingness to collaborate with the government in addressing environmental concerns while developing a domestic lithium source.
The project has faced controversy in the past, with the death of over 17,000 Tiehm’s buckwheat flowers near the mine site in 2020 sparking allegations of deliberate harm. ioneer denied any involvement, and subsequent government investigation attributed the loss to rodents seeking water.
In 2021, South African mining company Sibanye Stillwater agreed to purchase a 50 per cent stake in the project for USD 490 million, with the condition that all necessary permits are obtained.
As the review process moves forward, the Rhyolite Ridge lithium mine project continues to exemplify the complex interplay between economic development, environmental conservation, and the transition to clean energy technologies in the United States.