By Brittany Sheehan
Nevada News and Views
China’s dominance of the global lithium market is about to face a new challenger from the Nevada desert.
With a bold $996 million federal loan to ioneer Ltd.’s Rhyolite Ridge project, the Department of Energy is wagering that the Silver State can help break America’s dependence on foreign lithium supplies.
It’s a massive bet with taxpayer money that deserves careful scrutiny, even as similar public-private partnerships reshape America’s industrial landscape.
The China factor
The push for domestic lithium production comes as China maintains its grip on global battery metal supplies.
Currently, Chinese companies control most of the world’s lithium processing capacity and dominate the electric vehicle battery supply chain. This control has left U.S. manufacturers vulnerable to supply disruptions and price fluctuations.
China’s advantage isn’t just in processing — their companies have also been aggressively acquiring mining rights worldwide, including in lithium-rich regions of South America and Australia. For American policymakers, the Rhyolite Ridge project represents a crucial step toward breaking this dependency and securing a domestic supply chain for critical minerals.
Breaking down the billion-dollar deal
The Rhyolite Ridge project, located about 225 miles north of Las Vegas, represents a growing trend of government-backed private ventures. The private sector is stepping up, with South Africa-based Sibanye Stillwater planning to invest $490 million.
This shared risk model has become more common as America seeks to rebuild critical industrial capacity.
Like Florida’s Brightline rail service or the CHIPS Act semiconductor investments, it combines federal funding with private capital to tackle large-scale industrial challenges. Brightline’s upcoming Las Vegas to Southern California rail project is another example of this model, combining private investment with government-backed bonds to build transportation infrastructure.
The private-public partnership model has shown mixed results nationally. Other ventures, like some solar company loans from the past, have left taxpayers with losses.
Production goals and economic impact
When operational in 2028, the facility aims to produce 22,000 metric tons of lithium annually — enough for 370,000 electric vehicles. For perspective, that would quadruple current U.S. lithium production, which sits at less than 5,000 metric tons per year.
The facility will also produce boron, providing a second revenue stream to help ensure loan repayment.
A senior Energy Department official, explaining why the loan amount increased from the original offer, said: “That gave everyone more comfort that this was a far better resource than originally imagined,”
Nevada’s stakes in the game
For Nevada’s economy, this represents both opportunity and risk.
While the project promises construction jobs and permanent positions in rural communities, taxpayers are essentially becoming major stakeholders in a mining venture. The state’s mining tax structure means Nevada should see ongoing revenue, but success depends on stable lithium prices and efficient operations.
Federal confidence
The Biden administration’s lithium strategy extends beyond just this project.
The senior Energy Department official said: “The Biden administration is ‘fully confident’ the three projects should be able to meet U.S. lithium needs by the early 2030s.”
Along with Rhyolite Ridge, two oter major lithium projects are receiving federal support, including a $2.26 billion loan for Lithium Americas and a $1.36 billion conditional funding commitment for a California lithium extraction project.
The road ahead
The project has secured its federal permit and construction should begin this year. While the billion-dollar price tag rightfully raises eyebrows, America’s industrial policy has shifted toward these public-private partnerships as a tool for rebuilding domestic manufacturing and resource production.
Success for Nevada will mean finding the right balance: leveraging federal support to build new industries while maintaining proper oversight of public funds and protecting local community interests. Time will tell if this billion-dollar bet pays off in America’s push to challenge China’s battery metal dominance.
True to its Battle Born name, Nevada once again finds itself at the center of a strategic national priority — this time, powering America’s push for industrial independence.
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Brittany Sheehan is a Las Vegas based mother, policy advocate and grassroots leader. She is active in local politics, successful in campaign work and passionate about liberty.

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