Ioneer Ltd (ASX:INR, OTC:GSCCF) is hopeful of securing a lifetime supply of the sulphur needed for its Rhyolite Ridge Lithium-Boron Project in Esmeralda County, Nevada, through a Memorandum of Understanding (MoU) signed with Shell (LON:RDSa) Canada Energy.
Under the MoU, the emerging lithium-boron supplier will purchase up to 500,000 tonnes of high-quality sulphur annually from Shell, which would fulfil the estimated annual sulphur requirement.
“With this MoU, Ioneer takes another key step to secure sulphur for the Rhyolite Ridge Lithium-Boron Project,” Ioneer’s managing director Bernard Rowe said.
“Sulphur is a primary input for our process as it will be converted into the sulphuric acid required for leaching the ore as well as releasing heat which is recovered to produce carbon-free power and steam for the facility.
“Shell is an ideal partner for this effort and we look forward to furthering our partnership together on additional decarbonisation solutions while providing materials for a sustainable future.”
Future collaboration
The signing of the MoU follows the Letter of Intent signed in December 2019. Both companies intend to sign a definitive agreement on the supply and will also collaborate to accelerate the energy transition.
Shell’s general manager for Global Sulphur and Thiogro Peter Zissos said: “We are excited to expand our partnership with Ioneer to include the sale of sulphur while collaborating on various decarbonisation solutions.
“Sulphur’s second largest use is for mining, including for the extraction of EV metals like lithium.
"With safe and reliable delivery of sulphur to customers like Ioneer, Shell Sulphur Solutions is delivering inputs critical for renewable energy production and management,” he added.
World-class project
Ioneer wholly owns the Rhyolite Ridge Lithium-Boron Project, the only known lithium-boron deposit in North America and one of only two known deposits in the world.
The definitive feasibility study completed in 2020 confirmed Rhyolite Ridge as a world-class lithium and boron project that is expected to become a globally significant, long-life, low-cost source of lithium and boron vital to a sustainable future.
The project is expected to come on stream in 2025, with lithium offtake agreements already in place with Ford Motor Company (NYSE:NYSE:F), PPES (a joint venture between Toyota Motor (NYSE:TM) Corporation and Panasonic Corporation (NYSE:PC)) and EcoPro Innovation.