Sibanye-Stillwater, a South African mining company, has withdrawn its investment from the Rhyolite Ridge lithium-boron project, citing that the project did not meet its investment criteria under current pricing assumptions. This decision follows a significant drop in lithium prices, which have decreased by about 80% since their 2022 peak. Initially, Sibanye-Stillwater planned to invest $490 million for a 50% stake in the project.
Despite the setback, Ioneer Limited, the company behind the Rhyolite Ridge project in Esmeralda County, remains optimistic. The company has secured a $996 million loan from the U.S. Department of Energy to support its efforts to enhance domestic lithium supply. This loan will assist in on-site processing of lithium-boron, crucial for the project’s development.
Concerns have been raised about the environmental and cultural impacts of the Rhyolite Ridge mine. Critics, including the Center for Biological Diversity, warn that the mine could lead to the extinction of the endangered Tiehm’s buckwheat and harm indigenous sacred lands. Despite these criticisms, Ioneer plans to proceed with the project, which is expected to support the production of lithium for around 370,000 electric vehicles annually and create numerous jobs.
The project is touted as environmentally conscious, with plans to recycle half of its water use and eliminate the need for evaporation ponds, thus minimizing water consumption during operations. However, the decision by Sibanye-Stillwater to withdraw has highlighted ongoing debates about the environmental and economic viability of the project.
