Sibanye Stillwater Withdraws from Rhyolite Ridge Lithium Project

Sibanye Stillwater announced on Wednesday that it will not proceed with its planned investment in the Rhyolite Ridge lithium project in Nevada, citing the sharp decline in lithium prices.

Following a review of updated studies on the project, Johannesburg-based Sibanye determined that the investment no longer met its required hurdle rates under prudent pricing assumptions. The company did not provide further details on its decision.

The price of lithium, a critical component in electric vehicle batteries, has fallen by more than 80% since its peak in November 2022 due to oversupply, leading companies to halt or delay lithium projects globally.

Sibanye initially agreed to form a joint venture with Australian-listed Ioneer in 2021 as part of its strategic move into battery metals. Under the terms of the deal, Sibanye was set to invest $490 million for a 50% stake in the project and had also acquired a 6% shareholding in Ioneer through a $70 million investment.

In response, Ioneer stated that it was "pleased to have this pending matter resolved, enabling us to progress the fully permitted project to a final investment decision." The company highlighted that the project, which has the potential to quadruple U.S. lithium production, had secured a key federal permit and finalized a $996 million loan from the U.S. Department of Energy.

Ioneer remains committed to advancing the Rhyolite Ridge project and is seeking a new equity partner to support its transition into production.