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

ioneer Ltd (“ioneer” or “the Company”) (ASX: INR, NASDAQ: IONR), an emerging lithium-boron supplier, is pleased to announce that it has signed a binding supply agreement (“Agreement ) with Prime Planet Joint Venture Energy & Solutions (“PPES”) between Toyota Motor Corporation (“Toyota”) and Panasonic Corporation (“Panasonic”), in which ioneer will supply PPES with lithium carbonate from its Rhyolite Ridge Lithium- Bore (“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 and approximately 174,400 tonnes of boric acid per year over the 26-year life of the Rhyolite Ridge1 project. 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 begin production in 2025 to meet urgent battery material needs in the United States.

This agreement follows two prior binding offtake agreements 2,3 and in total represents the completion of the pre-production lithium carbonate supply commitments it currently intends to make for Rhyolite Ridge.

ioneer Executive Chairman James Calaway said:
“ioneer is grateful to announce another 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 United States. We look forward to supplying lithium materials to PPES and all of our purchasing partners for their growth in the global electric vehicle market. »

PPES President 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 technology of refining lithium from sedimentary origin and in its competitiveness, and we expect it to strengthen the PPES supply chain.

Key terms of the agreement with PPES include:

Product: Lithium Carbonate

Duration of the contract: 5 years

Volume: 4,000 tonnes per year

Pricing: adjusted quarterly based on agreed pricing formula

Currency: USD per metric ton

Conditions precedent: ioneer’s final investment decision

About ioner
ioneer Ltd owns 100% 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-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 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 studying 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 agreed to form a joint venture in January 2019 and this company, PPES, started operations in April 2020.