Article from "*" Special Report: TheUS Government should...

Article from "*"


Special Report: TheUS Government should be doing even more to incentivise the domestic productionof ‘critical minerals’ like lithium, a bipartisan group of US senatorsannounced this week.

The US is capable of being aleader in the development of the minerals needed for clean energy technologies,but is currently losing the race to China, said Senator Lisa Murkowski, whochairs the US Senate’s Energy and Natural Resources Committee.

And Australia is now alsodesperately trying to broaden its partnership with the US in a bid to ensure ittoo doesn’t fall short of the much-needed critical minerals.

Prime Minister Scott Morrisonis in Washington DC this week to meet with US President Donald Trump to discussUS-Australia co-operation on critical minerals.

Rare earths are an essentialmaterial in electric vehicles, particularly permanent magnets.

>> Learn more about ioneer

The US’ intense focus on its domestic battery supply chain has already led to early positives for junior players like emerging lithium-boron producer ioneer (ASX:INR).

ioneer is rapidly advancingits low-cost Rhyolite Ridge Project in Nevada which will produce 20,000 tonnesof lithium carbonate at full capacity.

The company’s goal is tobecome the first major lithium mine in the US to supply a domestic lithium-ionbattery supply chain.

Last Thursday, Amazon announcedit would purchase 100,000 electric delivery vans from Rivian Automotive between2021 and 2024.

“This designation of criticalminerals that President Trump introduced a while back started the ball rollingin terms of streamlining permit process times and requirements, and our projecthas certainly been a beneficiary of that,” Managing Director Bernard Rowe told * previously.

Don’t forget about the boron

What distinguishes RhyoliteRidge from other lithium projects is the boron co-product.

It’s shaping up as a keymineral in many products whose demand is rapidly increasing due to urbanisationin Asia, and ensuring farms get the best out of their crops.

It’s estimated that just twoproducers control 80 per cent of the refined boron market, which has helpedprices remain stable.

For now anyway, becauseTurkey supplies 50 per cent of the world’s boron and has the majority of theworld’s boron reserves.

Any inflammation of thepolitical situation in the Middle East would pose an issue for borate end-usersreliant on Turkish supply, particularly in European markets.

A heightened desire to securenon-Turkish supply should help ioneer in its boron offtake partnering process.

In the US, for example, acompany called Corning supplies Apple with precision glass for its iPhones,iPads, and watches.

Boron is a key component ofthat glass.

This could make Apple andCorning potential US partners for ioneer, as both rely on lithium and boron intheir products.

Also just last week, Applesaid it would award Corning $250 million from a $5 billion fund dedicated toadvanced manufacturing in the US, which builds on the $200 million that Corningreceived in 2017.

“Glass for every generationof iPhone, including iPhone 11 and iPhone 11 Pro which will be availablelater this week, has been made at Corning’s Harrodsburg, Kentucky plant,” Applesays.

“Apple’s AdvancedManufacturing Fund was designed to foster and support the innovative productionand high-skill jobs that will help fuel a new era of technology-driven manufacturingin the US.”

And minerals are thefundamental building blocks for any modern technology, Senator Lisa Murkowskisays.

“In the energy world,batteries don’t work without lithium, without graphite, cobalt, and nickel. Andwe all know these minerals don’t just appear out of thin air.”

Right now, the United Statesis falling further behind in the global race to control supply chains for newtechnologies, she says.

“Allowing that to happen is amassive strategic mistake.”