SYDNEY, July 31, 2022 /PRNewswire/ —
- Lithium from ioneer’s Rhyolite Ridge project in Snowfall will be supplied directly to Prime Planet Energy & Solutions, Inc. (“PPES”)
- In support of the U.S. end-to-end electrified vehicle supply chain and in compliance with ioneer initiatives, PPES will produce, refine and incorporate ioneer-supplied lithium into lithium-ion batteries, furthering electrification in the automotive market. USA
- The 5-year Binding Agreement is for a total of 4,000 tonnes per year of lithium carbonate from ioneer’s Rhyolite Ridge Lithium-Boron Operations in Snowfall and represents approximately 19% of the annual production in the first 5 years of production
- Prime Planet Energy & Solutions is a battery joint venture between Toyota Motor Corporation and Panasonic Corporation
ioneer CEO, james calawaysaid:
“ioneer is pleased to announce another key milestone for our company with a lithium carbonate mining agreement with PPES. PPES is a world class organization and we look forward to being your trusted partner. This and previously announced agreements with Ford and EcoPro solidify ioneer’s focus on the U.S. electric vehicle supply chain infrastructure. We look forward to providing lithium materials to PPES and all of our purchasing partners for their growth in the market. overall EV”.
President of the PPES, Hiroaki Koda said:
“I am delighted to have a great partnership with ioneer in the battery supply chain, which can promote the electrification of vehicles to achieve a carbon neutral society. Having an agreement with ioneer provides PPES with a first step in securing the supply of lithium in the US, one of the most important parts of matching the fast-growing electric vehicle industry. We are confident in ioneer’s technology for refining sedimentary lithium and its competitiveness, and we expect it to strengthen the PPES supply chain.”
ioneer Ltd (“ioneer” or “the Company”) (USDIONRan emerging supplier of lithium and boronis pleased to announce that it has entered into a binding supply agreement (“Agreement”) with the Prime Planet Energy & Solutions (“PPES”) joint venture between Toyota Motor Corporation (“Toyota”) and Panasonic Corporation (“Panasonic”), in which ioneer will supply PPES with lithium carbonate from its Rhyolite Ridge Lithium-Boron Project (“Rhyolite Ridge”) in Nevada.
PPES is a battery production company established through a joint investment between Toyota, the world’s largest automaker by revenue, and Panasonic, a leading battery manufacturer.
Under the Agreement, ioneer will deliver 4,000 tonnes per year (tpa) of lithium carbonate to PPES within 5 years. PPES will use ioneer’s lithium carbonate to produce batteries for use in US electric vehicles.
ioneer is expected to produce an annual average of approximately 20,600 tons of lithium carbonate/hydroxide along with approximately 174,400 tons of boric acid per year over the 26-year life of the Rhyolite Ridge project.1. Dual production of lithium and boric acid allows ioneer to not only produce lithium in the US, but to do so at the bottom of the global cost curve. ioneer anticipates starting production in 2025 to meet urgent battery material requirements in the United States.
This Agreement follows the two prior binding purchase agreements23 and, in total, represents the completion of the pre-production lithium carbonate supply commitments it currently intends to make for Rhyolite Ridge.
Key terms of the Agreement with PPES include:
- Product: lithium carbonate
- Duration of the contract: 5 years
- Volume: 4,000 tpa
- Price: Adjusted quarterly based on the agreed price formula
- Badge: USD per metric ton
- Precedent of the condition: ioneer’s final investment decision
This version of ASX has been licensed by the CEO of ioneer, bernard rowe.
ioneer Ltd owns 100% of the Rhyolite Ridge lithium-boron project, located in nevada united states of americathe only known lithium-boron deposit in North America and one of only two known deposits in the world. The Definitive Feasibility Study (DFS) completed in 2020 confirmed Rhyolite Ridge as a world-class lithium and boron project that is expected to become a low-cost, long-lived, globally significant lithium and boron source, vital for a sustainable future. In September 2021, ioneer signed a 50/50 joint venture agreement with Sibanye Stillwater Ltd to advance the Rhyolite Ridge project. ioneer will be the operator of the Project, which is expected to come online in 2025.
About Prime Planet Energy and Solutions
Prime Planet Energy & Solutions (PPES) is a leading developer and manufacturer of prismatic lithium-ion batteries, primarily for automotive applications. PPES offers optimal solutions that meet our customers’ needs using world-class products with industry-leading safety, quality and performance, which have been developed and promoted in cooperation with a wide range of business partners. In december 2017, Toyota Motor Corporation and Panasonic Corporation agree to begin studying the feasibility of a joint prismatic car battery business. The two companies realized that the popularization of electric vehicles would be necessary to help address pressing social problems such as global warming, air pollution, natural resource depletion, and energy security, and that meeting demand and customer expectations around the world of electric vehicles would help create a more sustainable society. Toyota and Panasonic agreed to establish a joint venture in January 2019 and that company, PPES, began operations in april 2020.
- Refer ASX Release Announced Titled ‘ioneer Delivers Definitive Feasibility Study Confirming Rhyolite Ridge As A World-Class Lithium-Boron Project’ 30 April 2020.
- Announced Release of Refer ASX Entitled ‘ioneer Signs Binding Lithium Offtake Agreement with Ford’ 22 July 2022.
- See the ASX release titled ‘EcoPro Innovation Increases Lithium Extraction Volume from Rhyolite Ridge’ published February 16, 2022.