ioneer Ltd has raised approximately US$50.4 million through an institutional placement to fund the advancement of its Rhyolite Ridge lithium-boron project in Nevada towards a Final Investment Decision in the second half of 2026. The capital injection supports project readiness, environmental permitting, and early works for this strategically significant US critical minerals asset.
- A$72 million institutional placement at A$0.18 per share, 15% dilution
- Funds to support Rhyolite Ridge project through to Final Investment Decision (FID) in 2H 2026
- Rhyolite Ridge is a permitted, shovel-ready lithium-boron project with 77-year mine life
- Project benefits from US$996 million Department of Energy loan and inclusion of boron on US Critical Minerals List
- Strategic partnering process underway, expected to conclude in first half of 2026
Funding the Future of US Critical Minerals
ioneer Ltd (ASX, INR) has announced a significant equity raising, securing approximately US$50.4 million (A$72 million) through an institutional placement. This capital injection is earmarked to advance the Rhyolite Ridge lithium-boron project in Nevada, USA, towards a Final Investment Decision (FID) targeted for the second half of 2026. The placement involves issuing around 400 million new ordinary shares at A$0.18 each, representing a 15% dilution of existing share capital.
The Rhyolite Ridge project stands out as a rare, long-life, and fully permitted lithium-boron deposit, boasting a 77-year mine life and robust economics. It is uniquely positioned as the only permitted, shovel-ready lithium-boron project in the United States, a fact underscored by the recent addition of boron to the US Critical Minerals List. This designation enhances the project's strategic importance amid growing demand for critical minerals essential to batteries, magnets, semiconductors, and military applications.
Strategic Support and Project Progress
Backing the project’s development is a US$996 million loan from the US Department of Energy (DOE), reflecting strong government support for domestic critical mineral production. The equity raising proceeds will fund long lead items, early works, environmental and permitting expenses, and general corporate purposes, ensuring the company is well-positioned to meet technical and regulatory milestones ahead of FID.
In parallel, ioneer is progressing a strategic partnering process, with assistance from Goldman Sachs, aimed at securing committed equity partners to accelerate project development. This process is expected to conclude in the first half of 2026, leveraging favourable lithium and boron market dynamics and the project's advanced status.
Robust Economics and Market Position
Rhyolite Ridge’s economics are compelling, with an unlevered net present value (NPV) of approximately US$2.3 billion and an internal rate of return (IRR) of 23.2%. The project’s all-in sustaining cash costs place it in the bottom quartile of global lithium producers, benefiting from co-production of boric acid and lithium carbonate. Binding offtake agreements with blue-chip customers such as Ford and EcoPro further underpin revenue visibility.
Moreover, the project is shovel-ready with 70% engineering design complete, final federal permits secured, and a positive Record of Decision from the Bureau of Land Management. The company’s management team brings extensive industry experience, further de-risking the path to production.
Risks and Challenges Ahead
Despite these strengths, ioneer faces several risks typical of mining project developments. These include potential construction delays, cost inflation, commodity price volatility, and ongoing litigation related to environmental permits. Notably, a federal lawsuit challenging the Bureau of Land Management’s approval remains pending, though no injunctions have been granted to date.
Funding remains a critical factor, with drawdowns on the DOE loan contingent on securing equity funding and finalising updated project economics. The termination of a previous equity funding agreement with Sibanye-Stillwater Ltd underscores the importance of the current strategic partnering process.
Looking Ahead
ioneer’s equity raising solidifies its financial footing as it advances towards construction readiness and FID. The company’s unique positioning within the US critical minerals landscape, combined with strong government backing and strategic partnerships, sets the stage for a near-term path to production, anticipated by 2029. Investors and industry watchers will be closely monitoring the outcomes of the partnering process, commodity price trends, and regulatory developments in the months ahead.
Bottom Line?
ioneer’s successful capital raise marks a pivotal step towards unlocking a strategically vital US lithium-boron asset, but execution risks and market volatility remain key watchpoints.
Questions in the middle?
- Who will emerge as the strategic equity partner(s) to support Rhyolite Ridge’s development?
- How will ongoing environmental litigation impact the project’s timeline and costs?
- What are the implications of lithium and boron price fluctuations on project economics and funding?