Highlights:
- ioneer has signed a binding offtake agreement with Ford to
supply lithium from Rhyolite Ridge in Nevada intended to supply BlueOval SK.
- In support of end-to-end U.S. EV supply chain and Ford's plan,
ioneer is supplying lithium from its Nevada operations for lithium-ion batteries
planned for EVs built in America.
- The 5-year binding agreement is for a total of 7,000 tpa of
lithium carbonate from ioneer's Rhyolite Ridge Lithium-Boron
operation in Nevada and represents
approximately 34% of annual output in the first 5 years of
production.
SYDNEY, July 21,
2022 /PRNewswire/ -- ioneer Ltd (ioneer or the
Company) (ASX: INR, NASDAQ: IONR), an emerging
lithium–boron supplier, is pleased to announce it has signed a
binding offtake supply agreement with Ford Motor Company. Under the
agreement, ioneer will supply Ford with lithium carbonate from its
Rhyolite Ridge Lithium-Boron Project in Nevada.
Under the agreement, ioneer will deliver 7,000 tonnes per annum
(tpa) of lithium carbonate to Ford over a 5-year term, starting in
2025. Ford intends to utilize ioneer's lithium carbonate to produce
batteries for use in Ford electric vehicles through BlueOval SK,
the Ford-SK On battery manufacturing joint venture.
ioneer is expected to produce an annual average of approximately
20,600 tonnes of lithium carbonate/hydroxide along with
approximately 174,400 tonnes of boric acid per year over the
Rhyolite Ridge project's 26-year lifei. The dual
production of lithium and boric acid allows ioneer to not only
produce lithium in the U.S., but to do so at the bottom of the
global cost curve. ioneer anticipates commencing production in the
second half of 2025 to support urgent requirements for battery
materials in the United
States.
This agreement follows the earlier signing of an offtake
agreementii representing approximately 34% of
ioneer's annual lithium carbonate production from Rhyolite Ridge in
the first three years of operation.
ioneer's Executive Chairman, James
Calaway, said:
"The agreement with Ford is a significant
milestone for ioneer, highlighting the mature state of the Rhyolite
Ridge project development and its ideal position to serve the U.S.
supply chain with domestic battery materials.
Partnering with a recognised world-class
automaker that exemplifies the spirit of American innovation is a
testament to the quality of our lithium carbonate, and our
commitment to the highest environmental standards and
sustainability practices."
ioneer's Managing Director, Bernard
Rowe said:
"Simply put, this strategic relationship
means Nevada lithium for American
cars, and it will lead to job creation across all levels of the
electric vehicle supply chain. We look forward to continuing to
work with Ford and its partners to help develop a secure and
reliable end-to-end U.S. EV industry."
Lisa Drake, Ford Model
e vice president, EV Industrialization, said:
"We look forward to developing this new
relationship with ioneer. Helping unlock lithium in the U.S. will
help us support localized production of battery cells going forward
and, ultimately, support our efforts to deliver EVs for millions of
customers."
Key terms of the Agreement include:
- Product: Lithium carbonate.
- Contract Duration: 5 Years beginning when ioneer
notifies Ford that the project has been fully completed and
commissioned in accordance with the engineering, procurement and
construction contract applicable to the project (anticipated in 2H
2025).
- Volume: 7,000 tpa.
- Price: Adjusted quarterly based on agreed market-based
price formula.
- Currency: USD per metric ton.
- Conditions Precedent: ioneer's Final Investment Decision
anticipated by June of 2023 and no later than by December 2024, Ford's approval of the final
product specification on or before September
2022. Both conditions may be waived by the parties.
This ASX release has been authorised by ioneer Managing
Director, Bernard Rowe.
Contacts
Matt Dempsey
FTI
Consulting
ioneer
Investor & Media
Relations (USA)
T: +1 202
316 9609
matt.dempsey@fticonsulting.com
Alex Cowie
NRW
Communications
ioneer
Investor &
Media Relations (Aus)
T: +61 412 952 610
E: alexc@nwrcommunications.com.au
Jennifer Flake
Ford
Communications
T: +1 313 903 0429
E: jflake1@ford.com
About ioneer
ioneer Ltd is the 100% owner of the Rhyolite Ridge Lithium-Boron
Project located in Nevada, USA,
the only known lithium-boron deposit in North America and one of only two known such
deposits in the world. The Definitive Feasibility Study (DFS)
completed in 2020 confirmed Rhyolite Ridge as a world-class lithium
and boron project that is expected to become a globally
significant, long-life, low-cost source of lithium and boron vital
to a sustainable future. In September
2021, ioneer entered a 50/50 joint venture agreement with
Sibanye Stillwater Ltd to advance the Rhyolite Ridge project and
signed a separate offtake agreement with Korea's EcoPro Innovation
in 2021. ioneer will be the operator of the Project, which is
expected to come onstream in 2025.
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in
Dearborn, Michigan, that is
committed to helping build a better world, where every person is
free to move and pursue their dreams. The company's Ford+ plan for
growth and value creation combines existing strengths, new
capabilities and always-on relationships with customers to enrich
experiences for and deepen the loyalty of those customers. Ford
designs, manufactures, markets and services a full line of
connected, increasingly electrified passenger and commercial
vehicles: Ford trucks, utility vehicles, vans and cars, and
Lincoln luxury vehicles. The
company is pursuing leadership positions in electrification,
connected vehicle services and mobility solutions, including
self-driving technology, and provides financial services through
Ford Motor Credit Company. Ford employs about 183,000 people
worldwide. More information about the company, its products and
Ford Motor Credit Company is available at corporate.ford.com
i Refer ASX release titled 'ioneer
Delivers Definitive Feasibility Study that Confirms Rhyolite Ridge
as a World-Class Lithium and Boron Project' announced 30 April
2020.
|
ii Refer
ASX release titled 'EcoPro Innovation increases Lithium Offtake
Volume from Rhyolite Ridge' released 16 February 2022.
|
View original
content:https://www.prnewswire.com/news-releases/ioneer-signs-binding-lithium-offtake-agreement-with-ford-301590948.html
SOURCE ioneer