AsiaNet 90380

RENO, Nev. and SYDNEY, June 30, 2021 /PRNewswire=KYODO JBN/ --

Highlights:

  -- Binding lithium offtake supply agreement ("Agreement") signed with Korea's

     EcoPro Innovation Co. Ltd ("EcoPro"), a subsidiary of the EcoPro Group of

     Companies. The condition precedent of the Agreement is ioneer's final

     investment decision (FID).

  -- EcoPro Group is the world's second largest NCA cathode materials

     manufacturer and a major cathode supplier for global battery

     manufacturers.

  -- The three-year Agreement is for a total of 7,000 tpa of lithium carbonate

     from ioneer's Rhyolite Ridge Lithium-Boron operation in Nevada, comprising

     an initial and firm 2,000 tpa (subject to ioneer's FID) and an additional

     and optional 5,000 tpa (subject to mutual agreement no later than Q1

     2022).

  -- The Agreement marks ioneer's first lithium offtake agreement and

     represents up to 34% of ioneer's annual lithium carbonate output for the

     first three years of production.

  -- Rhyolite Ridge is the most advanced lithium development project in the US

     and ioneer is well positioned to benefit from an expected rapid

     acceleration in demand for battery materials.

ioneer Managing Director, Bernard Rowe, said:

     "The Agreement with EcoPro marks a significant milestone for ioneer and

     will be a valuable partnership. It is our first lithium offtake agreement

     and partnering with a recognised world leader in cathode materials

     manufacturing is a testament to the quality of our lithium carbonate.

     Following a pilot plant tour in mid-2019 and detailed testing of our

     product samples, we are pleased that EcoPro found that our materials meet

     its exacting standards and determined that ioneer was the right partner to

     support EcoPro's strategy for producing battery grade lithium hydroxide.

     "Equally important is ioneer and EcoPro's shared focus on sustainability.

     EcoPro is committed to the production of technologies that reduce

     emissions, and ioneer is empowering EcoPro through the production of these

     critical minerals with a significantly lower carbon footprint."

EcoPro Innovation President Anthony Kim, said:

     "As a trusted and respected company that seeks to improve the quality of

     life for mankind, we are pleased to partner with ioneer who share a

     similar vision. ioneer's lithium carbonate is well suited for conversion

     to high purity lithium hydroxide with a minimal environmental footprint.

     The US location of Rhyolite Ridge, coupled with the growing importance of

     the EV sector, positions both companies to play an important role in the

     electrification of transportation in the USA."

ioneer Ltd (ioneer or the Company) (ASX: INR), an emerging lithium–boron

supplier, today announced that it has signed a binding offtake supply agreement

("Agreement") with EcoPro Innovation Co Ltd ("EcoPro"), for a three-year term,

in which ioneer will supply EcoPro with lithium carbonate from its Rhyolite

Ridge Lithium-Boron Project ("Rhyolite Ridge") in Nevada. The condition

precedent of the Agreement is ioneer's final investment decision (FID).

Under the Agreement, ioneer will deliver up to 7,000 tonnes per annum (tpa) of

lithium carbonate to EcoPro over a three-year term. The 7,000 tpa comprises an

initial and firm 2,000 tpa (subject to ioneer's FID) and an additional and

optional 5,000 tpa (subject to mutual agreement, no later than Q1 2022). EcoPro

expects to convert ioneer's lithium carbonate into high purity lithium

hydroxide at its cathode plant to meet its customers' requirements.

ioneer is expected to produce an annual average of approximately 20,600 tonnes

of lithium carbonate, or approximately 22,000 tonnes of lithium hydroxide,

along with approximately 174,400 tonnes of boric acid per year over the 26-year

mine life(1). The dual production of lithium and boric acid allows ioneer to

not only produce lithium in the US, but to do so at the very bottom of the

global cost curve. ioneer anticipates commencing production in late 2023.

This Agreement follows the earlier signing of an initial offtake agreement and

two sales and distribution agreements2 for boric acid production, representing

100% of offtake in year one and more than 85% of boric acid production in years

two and three.

Key terms of the Agreement with EcoPro include:

  -- Product: Lithium carbonate

  -- Contract Duration: 3 Years

  -- Volume: Up to 7,000 tonnes per annum with a minimum of 2,000 tonnes per

     annum (subject to ioneer's FID), additional volume (5,000 tonnes per

     annum) by mutual agreement no later than Q1 2022 (or such later date

     mutually agreed by the Parties).

  -- Price Term: CIF Busan, Korea.

  -- Price: Adjusted quarterly based on agreed price formula.

  -- Currency: USD per metric ton

  -- Condition Precedent: ioneer's Final Investment Decision

This ASX release has been authorised by ioneer Managing Director, Bernard Rowe.

CONTACTS

Bernard Rowe

ioneer Ltd

Managing Director

T: +61 419 447 280

browe@ioneer.com

Jane Munday

FTI Consulting

Investor & Media Relations

(Australia)

T: +61 488 400 248

jane.munday@fticonsulting.com

Grace Altman

FTI Consulting

Investor & Media Relations

(USA)

T: +1 917 208 9352

grace.altman@fticonsulting.com

ABOUT IONEER

ioneer Ltd is the 100% owner 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)(3) completed in April 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.

ABOUT ECOPRO INNOVATION CO. LTD

EcoPro Innovation Co Ltd is a subsidiary of The EcoPro Co., Ltd Group of

Companies which include EcoPro BM, EcoPro Gem and EcoPro Innovation. EcoPro

Innovation specializes in lithium-ion batteries and filter frames. EcoPro

Innovation has secured a value chain for lithium cells by developing,

manufacturing and processing technologies for lithium compounds, which is a

core material of lithium cells.

(1) Refer ASX release titled 'ioneer Delivers Definitive Feasibility Study that

Confirms Rhyolite Ridge as a World-Class Lithium and Boron Project' announced

30 April 2020.

(2) Refer to ASX announcement entitled 'ioneer Substantially Completes Asian

Boric Acid Distribution and Sales Network' released 21 May 2020.

(3) Refer ASX release titled 'ioneer Delivers Definitive Feasibility Study that

Confirms Rhyolite Ridge as a World-Class Lithium and Boron Project' announced

30 April 2020.

SOURCE: ioneer