Sibanye-Stillwater Withdraws from US Rhyolite Ridge Lithium Project Over Financial Viability Concerns

Sibanye-Stillwater

South African Miner Cancels $490 Million Investment After Reassessing Economic Return of Nevada-Based Lithium-Boron Site

Sibanye Ends US Lithium Ambitions, Exits Ioneer JV Over Project Economics

South African mining company Sibanye-Stillwater has announced it will not proceed with its planned investment in the Rhyolite Ridge Lithium-Boron Project in Nevada. The decision follows a review of updated technical and financial information provided by joint venture partner Ioneer Ltd., based in Australia.

Sibanye stated that the project does not meet its internal rate of return (IRR) thresholds based on prudent lithium pricing assumptions. As a result, the company has scrapped plans to invest $490 million for a 50% equity stake in the lithium project, which was originally signed in 2021.

Rhyolite Ridge Targeted U.S. Lithium Supply Boost

The Rhyolite Ridge project had aimed to produce 20,588 tonnes per year of lithium carbonate and 21,951 tonnes of lithium hydroxide, according to a 2020 definitive feasibility study. Positioned as a major supplier to the U.S. electric vehicle and energy storage markets, the project was viewed as critical to U.S. battery materials independence.

However, rising costs, permitting delays, and shifting market dynamics have pressured several lithium developers to reassess project economics, including those with U.S. strategic significance.

Market Implications and Next Steps for Ioneer

Sibanye’s exit could pose a setback to the U.S. lithium supply chain, especially as automakers and battery makers seek domestic sources. Ioneer has not yet commented on how it will move forward with project financing or timelines. The move highlights broader investor caution in lithium projects amid price volatility and capital intensity.

As lithium markets remain dynamic, miners like Sibanye are recalibrating strategies, prioritizing returns over expansion in a saturated development pipeline.