Why the Ioneer (ASX:INR) share price is on the rise today

Lithium demand is forecast to remain strong as global electric vehicle production looks set to surge.

| More on:
digitised image of electrical vehicle being charged

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Ioneer Ltd (ASX: INR) share price is moving higher in morning trade, up 2%.

Below we take a look at the latest announcement from the ASX lithium share.

What did Ioneer announce?

Ioneer's share price is gaining after the company reported it had secured a Water Pollution Control Permit for its Rhyolite Ridge Lithium-Boron Project in the US state of Nevada.

Alongside the Class II Air Quality Permit Ioneer received for the project last month, it has now received both of the crucial permits needed to commence construction at Rhyolite Ridge.

On completion, the project will produce lithium carbonate and boric acid end products. Covering some 3.8 square kilometres, it will include a process plant, quarry, overburden storage facility, and a spent ore storage facility.

According to the release, evaporation ponds and tailings dams will not be incorporated due to its engineering design. As the project recycles its own water, Ioneer estimates it will use 30 times less water than the only other existing US domestic lithium production operation.

The company reported it has already acquired all the water it needs via agreements with local farmers. It said the impact on local water resources will be net-zero.

Commenting on the latest permit approval, Ioneer's managing director Bernard Rowe said:

The grant of the Water Pollution Control and Air Quality Permits represents a significant milestone for the Rhyolite Ridge Lithium-Boron Project and further demonstrates that our unique lithium-boron ore allows for the production of end products with minimal environment impact, including surface footprint, air quality and water conservation…

[W]e are pleased that Rhyolite Ridge is the first developmental lithium project in Nevada to receive both Water Pollution Control and a Class II Air Quality permits. As the most advanced lithium development project in the US, we are committed to ensuring Rhyolite Ridge is a sustainable, environmentally sensitive operation that also delivers significant positive economic impact in the state of Nevada.

Rowe said that with both permits secured, Ioneer can continue its work toward construction of the project.

Ioneer share price snapshot

Ioneer's share price has been a strong performer over the past 12 months, up 246%. By comparison the All Ordinaries Index (ASX: XAO) is up 25% in the same period.

Year-to-date, the Ioneer share price has continued to outperform, up 48% so far in 2021.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

A miner holding a hard hat stands in the foreground of an open cut mine
Resources Shares

A close look at BHP shares. What is the mining giant's next move?

Let's take stock of what the experts think.

Read more »

Miner looking at a tablet.
Resources Shares

Short bets on Pilbara Minerals shares are declining. Is now the time to buy?

Could the trade be unwinding?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

'I hate what I have done': Mineral Resources share price down as Ellison laments actions

Managing Director Chris Ellison says he deeply regrets the impact of his 'error of judgement'.

Read more »

A man in shirt and tie uses his mobile phone under water.
Resources Shares

The Lake Resources share price is sinking yet again. Here's why

The longer-term downtrend continues.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

With a P/E ratio of 6, is the Fortescue share price a bargain?

Let’s dig into whether Fortescue shares are good value or not, in my eyes.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Down 15% this year, where's the next stop for Rio Tinto shares?

Where to next for the miner?

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

Can Pilbara Minerals shares cross the $3 mark?

Lithium stocks continue to split opinion.

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Resources Shares

'Encouraging signs' for Fortescue shares heading into 2025

This leading investment expert forecasts brighter days ahead for Fortescue shares.

Read more »