Dragonfly Energy Holdings Corp. and Ioneer Ltd. signed a commercial offtake agreement. According to Dragonfly Energy, the deal will strengthen U.S. battery supply chains.
Dragonfly Energy said the deal will provide the company with a domestic supply of lithium carbonate, a critical component in lithium iron phosphate battery cells.
The agreement builds on an effort to produce, utilize and recycle lithium.
Gov. Joe Lombardo has prioritized “closing the lithium loop in Nevada,” Dragonfly said. Lombardo detailed the plan in both his recent State of the State address and his five-year strategic plan.
“This agreement between Dragonfly Energy and Ioneer, and hopefully more like it in the future, is vital to our economy as we work to develop this new industry, secure Nevada’s energy independence and close the lithium loop,” Lombardo said. “In the future, we hope to see more Nevada companies creating innovative partnerships like this one, which will help strengthen our economy and demonstrate how Nevada is the lithium capital of North America.”
According to CEO of Dragonfly Energy Denis Phares, launching the company’s dry powder coating cell manufacturing process is only possible with access to lithium.
“This agreement gives us the opportunity to bring our entire manufacturing process not only to the U.S. but to Nevada,” Phares said. “from mining to manufacturing to recycling .”
The agreement demonstrates Ioneer’s tremendous value to the American supply chain, Dragonfly said.
Rhyolite Ridge is one of a few places in the world where lithium will be extracted and refined locally. Once federal permitting and construction is complete, Rhyolite Ridge is expected to quadruple current U.S. lithium output, Dragonfly Energy said.
According to Dragonfly Energy, the agreement also moves Dragonfly Energy closer to achieving the company’s goal to establish an integrated lithium battery cycle, from mining to cell and pack production to recycling.
“As the world’s demand for lithium in electric vehicles and energy storage increases, the need to secure a reliable and domestic source of lithium is critical,” said Bernard Rowe, Ioneer managing director and CEO. “Ioneer is pleased to partner with Dragonfly and deliver these critical materials from Rhyolite Ridge,”
Dragonfly Energy assembles lithium-ion battery packs in Nevada today through its Battle Born Batteries brand. The company said it will launch its pilot line for nonflammable lithium battery cell production later this year.
