Sibanye-Stillwater has decided to abandon the Rhyolite Ridge Lithium-Boron Project, a joint venture with Ioneer — an Australia-based lithium-boron producer.
According to a statement released on Wednesday, Sibanye-Stillwater’s decision follows a comprehensive review of updated project information provided by Ioneer. The review indicated that the project did not meet Sibanye-Stillwater’s investment criteria under current market conditions, the mining house said.
Sibanye-Stillwater initially agreed to form a joint venture with Ioneer in September 2021, with plans to acquire a 50% stake in the project. The completion of the joint venture was contingent on several conditions, including a final investment decision from Sibanye-Stillwater’s board.
Despite these plans, the project faced challenges, including environmental concerns and legal disputes. In October 2024, Sibanye-Stillwater received updated technical reports from Ioneer, which were reviewed by management and external specialists.
After conducting due diligence on the updated project information, Sibanye-Stillwater’s board resolved that the project did not meet the company’s investment hurdle rates at prudent pricing assumptions.
“Sibanye-Stillwater has communicated the decision of its board to Ioneer. The group remains committed to the US market and its battery metals strategy and will continue to assess growth opportunities in this space,” it said.
Sibanye-Stillwater initially pursued the Rhyolite Ridge project as a strategic entry point into the battery metals sector, particularly in the US and European markets. The project aimed to capitalise on growing demand for lithium and other critical minerals essential for electrification.
By establishing a presence in the US battery metals supply chain, Sibanye-Stillwater could have helped the country’s efforts to reduce its dependence on foreign sources of critical minerals. China’s dominance in this sector has created a pressing need for alternative suppliers as the US seeks to develop its domestic supply chain.
The project’s location in Nevada, close to existing infrastructure, was advantageous for operational efficiency. Additionally, Sibanye-Stillwater’s extensive mining experience and expertise, particularly in hydrometallurgy, as well as its relationships with carmakers, were expected to add significant value to the project.
Sibanye-Stillwater has a diverse portfolio of operations, projects, and investments across various locations — Africa (mainly SA), US, South America, Europe and Australia. The company is one of the world’s primary producers of platinum, palladium and rhodium.
The company has been expanding its presence in the battery metals market, focusing on lithium, nickel and cobalt, while also growing its recycling and tailings reprocessing exposure globally.
The decision by Sibanye to withdraw from the US lithium deal does not leave the group with any exposure to lithium. Sibanye’s potentially lucrative lithium project in Finland, backed by a consortium of lenders, is taking shape.
In September, the group secured a cash injection of about R10bn via a green loan package for the Finland project.
The project aims to start sustainable production of battery-grade lithium hydroxide, using its own ore. The mine and refinery in Finland is being touted to play an important role in helping Europe reduce its reliance on China for the key battery ingredient for electric vehicles.
The EU requires all new cars sold after 2035 to have zero-carbon emissions. Apart from being used as batteries for electric vehicles, lithium batteries also power laptops and mobile phones, and is used in the glass and ceramics industry.
With Kabelo Khumalo
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