ioneer signs binding lithium removal agreement with Prime Planet Energy & Solutions

SYDNEY, July 31, 2022 /PRNewswire/ —

Strong points:

  • Lithium from ioneer’s Rhyolite Ridge project at Nevada will be provided directly to Prime Planet Energy & Solutions, Inc. (“PPES”)
  • In order to support the end-to-end supply chain of electrified vehicles in the United States and to realize ioneer’s initiatives, the lithium supplied by ioneer will be produced, refined and incorporated into lithium-ion batteries by PPES, which will promote electrification in the US market
  • The 5-year binding agreement covers a total of 4,000 tonnes per year of lithium carbonate from ioneer’s Rhyolite Ridge Lithium-Bore operation in Nevada and represents approximately 19% of the annual production of the first 5 years of production
  • Prime Planet Energy & Solutions is a battery joint venture between Toyota Motor Corporation and Panasonic Corporation

ioner executive chairman, James Calawaysaid:

“ioneer is grateful to announce another key milestone for our business with a lithium carbonate removal agreement with PPES. PPES is a world-class organization and we look forward to being their trusted partner. This agreement and the Previously announced Ford and EcoPro agreements reinforce ioneer’s focus on electric vehicle supply chain infrastructure in the U.S. We look forward to supplying lithium materials to PPES and all of our purchasing partners for their growth in the global electric vehicle market.”

President of the PPES, Hiroaki Koda said:

“I am delighted to have a great partnership with ioneer in the battery supply chain, which can promote the electrification of vehicles towards achieving a carbon neutral society. Having an agreement with ioneer provides PPES with a first step in securing a US supply of lithium, one of the most important elements to match the rapidly growing electrified vehicle industry.We have confidence in ioneer’s original lithium refining technology sedimentary and in its competitiveness, and we expect it to strengthen the PPES supply chain.

ioneer Ltd (“ioneer” or “the Company”) (ASX: INR, NASDAQ: IONR), an emerging supplier of lithium-boronis pleased to announce that it has signed a binding supply agreement (“Agreement”) with the Prime Planet Energy & Solutions (“PPES”) joint venture between Toyota Motor Corporation (“Toyota”) and Panasonic Corporation (“Panasonic “), in which ioneer will supply PPES with lithium carbonate from its Rhyolite Ridge Lithium-Boron project (“Rhyolite Ridge”) in Nevada.

PPES is a battery production company established through a joint investment between Toyota, the world’s largest automaker by revenue, and Panasonic, a leading battery manufacturer.

Under the agreement, ioneer will deliver 4,000 tonnes per annum (tpa) of lithium carbonate to PPES over a period of 5 years. PPES will use ioneer’s lithium carbonate to produce batteries for US electric vehicles.

ioneer is expected to produce an annual average of approximately 20,600 tonnes of lithium carbonate/hydroxide as well as approximately 174,400 tonnes of boric acid per year over the 26-year life of the Rhyolite Ridge project1. Dual production of lithium and boric acid allows ioneer to not only produce lithium in the United States, but to do so at the very bottom of the global cost curve. ioneer plans to start production in 2025 to meet urgent battery material needs in United States.

This agreement follows the two previous binding direct debit agreements2.3 and, in aggregate, represents the completion of the pre-production lithium carbonate supply commitments it currently intends to make for Rhyolite Ridge.

Key terms of the agreement with PPES include:

  • Product: lithium carbonate
  • Contract duration: 5 years
  • Volume: 4,000 tons per year
  • Price: Adjusted quarterly based on agreed pricing formula
  • Currency: USD per metric ton
  • Conditions precedent: ioneer final investment decision

This ASX version has been authorized by the Managing Director of ioneer, Bernard Rowe.

contacts

Matt Dempsey

FTI Council

Alex Cowie
Communications NRW

Investor and Media Relations (US)

Investor and Media Relations (AUS)

T: +1 202-412-4241

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About ioner

ioneer Ltd owns 100% of the Rhyolite Ridge Lithium-Bore project located in Nevada, United Statesthe only known lithium-boron deposit in North America and one of only two such deposits known in the world. The Definitive Feasibility Study (DFS) completed in 2020 confirmed Rhyolite Ridge as a world-class lithium-boron project that is expected to become a globally significant, long-lived, low-cost lithium-boron source. cost, vital for a sustainable future. In September 2021, ioneer has entered into a 50/50 joint venture agreement with Sibanye Stillwater Ltd to advance the Rhyolite Ridge project. ioneer will operate the project, which is expected to go live in 2025.

About Prime Planet Energy and Solutions

Prime Planet Energy & Solutions (PPES) is a leading developer and manufacturer of prismatic lithium-ion batteries, primarily for automotive applications. PPES offers optimal solutions that meet the needs of our customers using premium products with industry-leading safety, quality and performance, which have been developed and maintained with the cooperation of a wide range of business partners. In December 2017, Toyota Motor Corporation and Panasonic Corporation agree to begin exploring the feasibility of a joint automotive prismatic battery business. Both companies realized that the popularization of electrified vehicles would be necessary to help address pressing social issues such as global warming, air pollution, natural resource depletion and energy security, and that addressing the demand and expectations of customers around the world for electrified vehicles would help achieve a more sustainable society. Toyota and Panasonic have agreed to form a joint venture in January 2019 and this company, PPES, started its activities in April 2020.

  1. Refer to ASX publication titled “ioneer delivers definitive feasibility study that confirms Rhyolite Ridge is a world-class lithium boron project” announced April 30, 2020.
  2. Refer to ASX posting titled “ioneer signs binding lithium offtake agreement with Ford” announced July 22, 2022.
  3. Refer to the ASX publication titled “EcoPro Innovation Increases Lithium Withdrawal Volume from Rhyolite Ridge” published February 16, 2022.

Ionist SOURCE

About Frances R. Smith

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