Boiling Point: The Lithium Dilemma at Rhyolite Ridge, Part 2
Host: Sammy Roth
Guest: Bernard Roe, Managing Director at Ioneer
Release Date: June 19, 2025
Introduction
In the second part of the two-part series on Rhyolite Ridge, Sammy Roth delves deeper into the complexities surrounding the proposed lithium and boron mine in Esmeralda County, Nevada. This episode features an in-depth conversation with Bernard Roe, the managing director of Ioneer, the company spearheading the Rhyolite Ridge project. The discussion navigates the intertwined challenges of advancing clean energy initiatives while preserving endangered species.
Rhyolite Ridge Project Overview
Bilateral Benefits of Lithium and Boron
Bernard Roe highlights the dual significance of Rhyolite Ridge as both a lithium and boron mine. While lithium is pivotal for electric vehicle batteries and energy storage systems, boron plays a crucial role in everyday products like borosilicate glass, detergents, and agricultural fertilizers.
Bernard Roe (02:09): "There are two main reasons the Rhyolite Ridge mine has been in the news. The first is lithium... The other reason Rhyolite Ridge has been in the news is the endangered wildflower."
Lithium’s Geological Abundance in Nevada
Sammy Roth explores the geological factors that make Nevada a hotspot for lithium deposits, emphasizing the combination of volcanic activity and faulting that concentrated lithium in shallow, evaporating lake beds millions of years ago.
Sammy Roth (10:18): "You had a lot of volcanic activity... the process of weathering and erosion... ended up in these shallow lake beds, which evaporated a lot."
Environmental Concerns: The Teams Buckwheat
Endangered Wildflower vs. Mining Operations
The central environmental concern is the potential extinction of the endangered wildflower, Teams Buckwheat, due to mining activities. Bernard Roe disputes the conservationists' claims, arguing that Rhyolite Ridge's operations can coexist with the preservation of the wildflower.
Bernard Roe (02:15): "Conservationists say the mine would drive the wildflower to extinction."
Scientific Research and Mitigation Efforts
Roe underscores the extensive research and mitigation measures Ioneer has undertaken to protect Teams Buckwheat. This includes growing the plant in controlled environments and replanting in areas affected by mining.
Bernard Roe (04:15): "We're going to build up a seed bank and then... grow plants that ultimately could be transplanted back into sites like this."
Despite Roe's confidence, the podcast recounts an attempted search for Teams Buckwheat on the mining site, which proved unsuccessful, highlighting the ongoing tension between development and conservation.
Sammy Roth (06:07): "This is a perfect spot for them... They’re proving to be elusive today."
Mining Process and Economic Viability
Hard Rock Mining Techniques
Ioneer's approach involves hard rock mining using explosives to break down sodium borosilicate rocks rich in lithium and boron. The leaching process with sulfuric acid extracts these minerals, leaving behind insoluble silica.
Sammy Roth (13:09): "We need to drill and blast to break up the rock."
Economic Potential and Market Dynamics
Roe discusses the economic prospects of Rhyolite Ridge, projecting an annual production of 20-22,000 tonnes of lithium carbonate and 150,000 tonnes of boric acid, significantly surpassing current U.S. production levels.
Sammy Roth (07:17): "We would produce about 20 to 22,000 tonnes of lithium carbonate a year and around about 150,000 tonnes of boric acid a year."
The interplay between lithium and boron enhances the project's attractiveness, given boron's stable market demand juxtaposed with lithium's volatile pricing influenced by the burgeoning electric vehicle market.
Sammy Roth (33:22): "We see very volatile pricing regime around lithium and we expect that to continue for the foreseeable future."
Funding Challenges and Strategic Responses
Loss of Private Equity Partner
Ioneer faced a setback when their private equity partner, Sibanier Stillwater, withdrew a promised $500 million investment due to unfavorable platinum and palladium market conditions.
Sammy Roth (36:13): "They were approximately 15 billion market cap company when we struck that deal... Today they're around 2 and a half to 3 billion."
Securing Alternative Funding
In response, Ioneer is actively seeking new partners while leveraging a secured $1 billion loan from the U.S. Department of Energy. The company plans to maintain majority ownership and operational control through a joint venture structure.
Sammy Roth (31:02): "We will sell down a stake in the project... but we will maintain the majority ownership and the operatorship management of the project."
Navigating Legal and Environmental Opposition
Lawsuits and Regulatory Hurdles
Environmental groups, including the Western Shoshone Defense Project, have initiated lawsuits aiming to revoke Ioneer's federal permits, challenging the project's environmental impact assessments.
Sammy Roth (38:14): "It's part of developing a mining project in this part of the world."
Despite these legal challenges, Roe expresses confidence in the project's compliance with environmental regulations and the robustness of its conservation measures.
Sammy Roth (38:41): "We're not concerned about it. We feel that we're in a good, strong position."
Addressing Activism and Scientific Scrutiny
Roe emphasizes the importance of data-driven approaches to resolve conflicts between mining and conservation, advocating for scientific assessments over assumptions.
Sammy Roth (40:26): "We've put the effort into... listening and understanding the concerns, being prepared to sit down and come up with solutions."
Future Outlook and Conclusion
Optimistic Projections
Ioneer remains hopeful to commence construction within the year, contingent upon securing new equity partners and navigating ongoing legal challenges. The anticipated announcement of an expanded mineral reserve is poised to bolster investor confidence.
Sammy Roth (42:09): "I'm hoping so, yes."
Balancing Clean Energy and Environmental Stewardship
The episode concludes with a reflection on the broader implications of lithium mining for clean energy. Roe advocates for the possibility of harmonious development that supports climate goals while safeguarding biodiversity through meticulous planning and proactive conservation efforts.
Bernard Roe (25:32): "I think it's probably pretty rare where you actually face a situation where you have to choose one or the other, you can't have coexistence."
Key Takeaways:
- Rhyolite Ridge's Dual Importance: Serves as a significant source for both lithium and boron, essential for clean energy and various industrial applications.
- Environmental Stewardship: Ioneer's commitment to preserving Teams Buckwheat through scientific research and proactive mitigation strategies.
- Economic Viability Amid Challenges: Overcoming financial setbacks and legal opposition to realize the project's potential.
- Navigating Clean Energy and Conservation: Demonstrates a model where renewable energy initiatives and environmental preservation can coexist through data-driven solutions and collaborative efforts.
For listeners interested in the intricate balance between advancing renewable energy infrastructure and environmental conservation, this episode of Boiling Point offers a comprehensive exploration of the challenges and potential solutions at Rhyolite Ridge.