Ioneer Secures A$72M Placement at A$0.18 to Advance Rhyolite Ridge
Ioneer Ltd has raised US$50 million through a share placement to accelerate development of its Rhyolite Ridge Lithium-Boron Project, positioning itself as a key U.S. supplier of critical minerals.
- US$50 million raised via placement of 400 million shares at A$0.18 each
- Funds to support early construction, project readiness, and environmental permitting
- Strong backing from institutional and existing investors
- Rhyolite Ridge is the only permitted lithium-boron project ready for development in the U.S.
- Strategic partnerships and offtake agreements already in place with major industry players
Capital Raise to Propel Critical Minerals Project
Ioneer Ltd (ASX, INR), an emerging lithium-boron producer, has successfully secured approximately US$50 million (A$72 million) through a single-tranche placement of 400 million new shares priced at A$0.18 each. This capital injection is aimed at advancing the development of its 100% owned Rhyolite Ridge Lithium-Boron Project in Nevada, a strategically important site for U.S. domestic supply of critical minerals.
The placement attracted strong support from both new and existing institutional investors, reflecting confidence in Ioneer’s strategy and the global significance of the Rhyolite Ridge project. The funds will primarily be allocated to long lead items, early construction works, advancing project readiness, environmental permitting expenses, and general working capital needs.
Strategic Importance of Rhyolite Ridge
Rhyolite Ridge stands out as the only permitted, shovel-ready lithium-boron project in the United States, a critical advantage amid growing demand for these minerals in electric vehicle batteries and other clean energy technologies. The project has already secured key offtake agreements with major industry players including Ford Motor Company, Prime Planet Energy & Solutions (a Toyota-Panasonic joint venture), and Korea’s EcoPro Innovation.
With federal permitting now complete, Ioneer is poised to move aggressively towards construction. Executive Chair James Calaway highlighted the placement as a strong endorsement of the company’s vision to onshore critical mineral production in the U.S., a move aligned with broader geopolitical and supply chain security priorities.
Next Steps and Market Positioning
Managing Director Bernard Rowe emphasised that the capital raise positions Ioneer well to complete its strategic partnering process and make a final investment decision. The company also plans to use the funds to address obligations under its existing US$996 million loan from the U.S. Department of Energy’s Energy Dominance Financing Program, secured in early 2025.
Joint lead managers Bell Potter Securities and Canaccord Genuity facilitated the placement, which was conducted under Ioneer’s existing placement capacity. The new shares will rank equally with existing ordinary shares, with trading expected to commence shortly after settlement.
As the lithium and boron markets continue to tighten amid accelerating global demand for electric vehicles and energy storage solutions, Ioneer’s progress at Rhyolite Ridge will be closely watched by investors and industry stakeholders alike.
Bottom Line?
This capital raise marks a pivotal step for Ioneer as it transitions from permitting to construction, setting the stage for its emergence as a critical U.S. minerals supplier.
Questions in the middle?
- When will Ioneer officially commence construction at Rhyolite Ridge?
- What are the terms and potential partners involved in the strategic partnering process?
- How will global lithium and boron market dynamics impact project economics and timelines?
