The Ioneer Ltd (ASX: INR) share price is having a strong day on Tuesday.
In morning trade, the ASX lithium share is up 25% to 17.5 cents.
Image source: Getty Images
Why is this ASX lithium share jumping?
Investors have been scrambling to buy the company's shares today after it released a big update on its Rhyolite Ridge Lithium-Boron Project.
According to the release, the company has entered into strategic non-binding letters of intent (LOI) with the Korea Overseas Infrastructure & Urban Development Corporation and Hyundai Engineering Co.
The former is the Republic of Korea's specialised public institution mandated by the Ministry of Land, Infrastructure and Transport (MOLIT) to facilitate and invest in overseas infrastructure and public-private partnership projects.
The latter is a leading Korean and international engineering, procurement, and construction company.
The LOI will see the parties work together to advance the development of the Rhyolite Ridge Lithium-Boron Project.
The ASX lithium share believes the project holds significant strategic value for both the Republic of Korea and the United States.
It notes that Rhyolite Ridge hosts the only known lithium-boron reserve in North America, one of two globally, and the only project of its kind in active development.
The parties intend to formalise their cooperation through the execution of Memorandums of Understanding, which are expected in July 2026.
Rhyolite Ridge Project
Ioneer reiterated that it is targeting a final investment decision for the second half of 2026, with first commercial production expected in 2029.
Once operational, Rhyolite Ridge will process ore into final products entirely on-site with annual lithium hydroxide and annual boric acid production of 27,800 tonnes per annum (tpa) and 135,500 tpa, respectively.
Commenting on the news, Ioneer's managing director, Bernard Rowe, said:
Rhyolite Ridge has been a decade in the making — through ongoing partnerships, permitting, and financing. Working with trusted Korean partners with a track record of on-time and on-budget delivery brings us closer to breaking ground and delivering urgently needed lithium and boron.
We're delighted to work with KIND and Hyundai Engineering and look forward to what we'll accomplish together.
KIND's director of plant business division, Chris Soeung Kim, spoke positively about the agreement, adding:
KIND, as a specialized PPP investment institution under the MOLIT, has been actively advancing investments in U.S. energy, infrastructure, and critical minerals projects. We view this project as a major milestone that will further strengthen bilateral cooperation and deepen the strategic partnership between the Republic of Korea and the United States.
