Federal court upholds ioneer’s Rhyolite Ridge lithium mine permit, clearing path to construction

A federal court in Nevada has upheld the Bureau of Land Management’s (BLM) approval of ioneer’s Rhyolite Ridge Lithium-Boron Project, dismissing a lawsuit that sought to halt the mine’s development. US District Judge Cristina Silva ruled that the BLM and the US Fish and Wildlife Service complied with relevant environmental laws, including the Endangered Species Act (ESA), in granting the permit. The legal challenge, brought by environmental groups concerned about the impact on Tiehm’s buckwheat—a rare wildflower endemic to the project area—was rejected, allowing ioneer to proceed towards construction. The lawsuit focused on the potential threat to Tiehm’s buckwheat, which grows exclusively within a small 10-acre zone inside the mining site. Plaintiffs argued that federal agencies had not adequately protected the plant’s survival. However, the court found that ioneer’s mitigation strategies, such as habitat fencing and buffer zones, met the necessary legal standards. The project will affect less than 5% of the plant’s critical habitat, and the court deemed these measures sufficient to minimise environmental harm. Rhyolite Ridge is poised to become a significant domestic source of lithium and boron, producing 22,000 metric tonnes of battery-grade lithium carbonate annually, alongside boric acid. This output is expected to support the electric vehicle (EV) market by supplying enough lithium for over 370,000 EVs each year. The project has attracted substantial investment, including a $996 million loan guarantee from the US Department of Energy and offtake agreements with major industry players such as Ford, Toyota-Panasonic’s Prime Planet Energy & Solutions, and South Korea’s EcoPro Innovation. Final permitting was granted in October 2024, with construction slated to begin in 2026 and production targeted for 2028. Reactions to the ruling were divided. James Calaway, Executive Chairman of ioneer, emphasised the critical need for domestic lithium and boron production to support the US’s clean energy transition. Conversely, environmental advocates like Patrick Donnelly of the Center for Biological Diversity expressed disappointment, criticising the mitigation plan as inadequate to protect the endangered wildflower. Although the court’s decision clears the way for the mine’s development, the ruling remains subject to appeal in the Ninth Circuit, potentially prolonging the legal process.