- Nevada Gov. Joe Lombardo states the importance of partnerships like those between Dragonfly Energy and Ioneer as vital to strengthening and diversifying Nevada economy.
- Agreement advances Nevada production and manufacturing of critical minerals and accelerates domestic electrification pipeline for EV battery components.
Tuesday, 9 May 2023 – Today Ioneer Ltd (“Ioneer” or the “Company”) (ASX: INR, NASDAQ: IONR) an emerging lithium-boron producer, and Dragonfly Energy Holdings Corp. (NASDAQ: DFLI), an industry leader in energy storage, announced a commercial offtake agreement partnership that will strengthen U.S. battery supply chains and invest in the production and manufacturing of Nevada-sourced lithium. The agreement between the two Nevada-based companies is expected to pave the way for continued investment in the state and provide Dragonfly with a domestic supply of lithium carbonate, a critical component in lithium iron phosphate battery cells.
The agreement builds on an effort to produce, utilize and recycle lithium, closing the lithium loop in Nevada that Gov. Joe Lombardo has prioritized for his administration, detailed in both his recent State of the State address and his Five Year Strategic Plan.
“This agreement between Dragonfly Energy and Ioneer, and hopefully more like it in the future, are vital to our economy as we work to develop this new industry, secure Nevada’s energy independence and close the lithium loop,” said Nevada Governor Lombardo. “In the future, we hope to see more Nevada companies creating innovative partnerships like this one, which will help strengthen our economy and demonstrate how Nevada is the lithium capital of North America.”
“As the world’s demand for lithium in electric vehicle and energy storage increases, the need to secure a reliable, sustainable, and domestic source of lithium is critical. Ioneer is pleased to partner with Dragonfly and deliver these critical materials from Rhyolite Ridge,” said Bernard Rowe, managing director and CEO at Ioneer.
“Deploying our innovative dry powder coating cell manufacturing process is exciting. But ultimately, cell production is only made possible by access to lithium,” Dr. Denis Phares, CEO of Dragonfly Energy, said. “This agreement gives us the opportunity to bring our entire manufacturing process not only to the U.S. but to Nevada, from mining to manufacturing to recycling.”
The agreement demonstrates Ioneer’s tremendous value to the American supply chain. Rhyolite Ridge is one of the most sophisticated undeveloped U.S. lithium projects, and one of few in the world where lithium will be extracted and refined locally. Once federal permitting and construction is complete, Rhyolite Ridge is expected to quadruple current U.S. lithium output. The agreement also moves Dragonfly Energy closer to achieving the company’s mission of establishing a vertically integrated lithium battery cycle, from mining to cell and pack production to recycling.
Key terms of the Agreement include:
• Product: Lithium carbonate.
• Contract Duration: 3 Years beginning when Ioneer notifies Dragonfly that the project has been fully completed and commissioned in accordance with the engineering, procurement and construction contract applicable to the project and is capable of producing and delivering product to customers who have annual commitments to purchase in excess of 3,000 tpa.
• Volume: A variable amount of surplus tons available after meeting previously announced offtake commitments.
• Price: Based on agreed market-based price formula.
• Currency: USD per metric ton.
• Conditions Precedent: ioneer’s Final Investment Decision.
This ASX release has been authorized by Ioneer Managing Director Bernard Rowe.