Ioneer Ltd has been conditionally awarded a long-term land lease by the U.S. Army to establish a critical boron processing facility at the Tooele Army Depot in Utah, marking a significant step in securing domestic defense supply chains.
- Conditional lease award for boron processing at Tooele Army Depot
- Part of U.S. Army’s Strategic Capital Initiatives to secure critical minerals
- Ioneer’s Rhyolite Ridge hosts North America’s largest undeveloped boron reserve
- Facility development targeted for 2027 start, operational by 2028
- Lease requires lessee-funded infrastructure upgrades and environmental compliance
Ioneer Among Four Firms Chosen for U.S. Army Critical Minerals Program
The U.S. Army has conditionally awarded Ioneer Ltd (ASX:INR, NASDAQ: IONR) a long-term land lease at the Tooele Army Depot in Utah to establish a critical mineral processing facility focused on boron. This selection places Ioneer alongside three other companies chosen to develop domestic processing plants on military installations, a first-of-its-kind initiative aimed at bolstering national defense supply chains.
The announcement, made on June 25, 2026, is part of the Army’s Strategic Capital Initiatives (SCI), which leverage underutilized Army land to partner with private sector firms. The goal is to create secure, domestic production capacity for minerals essential to military applications, including munitions, sensors, and advanced armour.
Rhyolite Ridge Boron Reserve Underpins Defense-Grade Supply
Ioneer’s Rhyolite Ridge Lithium-Boron Project in Nevada hosts the largest undeveloped boron ore reserve in North America and the only such reserve on the continent. Boron is critical to national security, underpinning advanced military materials such as boron carbide ceramics used in ballistic armour plates and specialized munitions components.
Following boron’s addition to the U.S. critical minerals list in November 2025, this lease award signals the government’s strategic commitment to domestic sourcing. The Army’s Enhanced Use Lease (EUL) model means Ioneer will finance, build, and operate the facility, while the Army retains land ownership and benefits from in-kind infrastructure improvements funded by the company.
Lease Terms and Development Timeline
The conditional lease is structured as an EUL, which requires lessees to cover all costs related to design, construction, operation, and eventual decommissioning of their facilities. Rent is expected to be paid predominantly through infrastructure upgrades at the Tooele Depot, enhancing utilities and mission capabilities for the Army.
Formal lease agreements are still under negotiation, with development slated to begin as early as 2027. The Army aims for initial operating capability by or before 2028, aligning with broader efforts to secure critical mineral supply chains amid increasing geopolitical tensions.
Strategic Implications for Ioneer and the U.S. Defense Industrial Base
This award complements Ioneer’s ongoing efforts to advance Rhyolite Ridge towards production, including recent strategic partnerships and capital raises to underpin project development. The Army’s focus on domestic ownership and stringent compliance with Buy American and Davis-Bacon wage requirements ensures these facilities support U.S. industrial security.
By securing this lease, Ioneer positions itself as a key player in the U.S. defense supply chain for boron, a mineral vital to force protection technologies. This development also highlights the increasing role of public-private partnerships in critical minerals processing, with other selected companies focusing on lithium, graphite, and heavy rare earth elements at different Army depots.
Bottom Line?
Ioneer’s conditional lease award marks a strategic foothold in U.S. defense supply chains, but final agreements and development milestones will be critical to watch.
Questions in the middle?
- When will the formal lease agreement with the U.S. Army be finalised?
- How will Ioneer’s Rhyolite Ridge project timelines align with the Army’s 2028 operational target?
- What impact will this partnership have on Ioneer’s financing and strategic partnerships?