• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

Ioneer Share Price Up on Lithium Project Engineering Contract (ASX:INR)

Like 0

By Lachlann Tierney, Tuesday, 13 July 2021

The Ioneer Ltd’s [ASX:INR] share price rose today on news Ioneer contracted FLSmidth for major product engineering at Rhyolite Ridge...

The Ioneer Ltd’s [ASX:INR] share price rose today on news Ioneer contracted FLSmidth for major product engineering at Rhyolite Ridge.

INR shares were up 3% at the time of writing.

The engineering contract represents a ‘major step’ towards the construction and development of the firm’s Rhyolite Ridge lithium project.

The lithium and boron explorer’s shares are up 45% year to date and 225% over the last 12 months.

ASX INR - Ioneer Share Price ChartSource: Tradingview.com

Ioneer awards engineering contract to develop US lithium project

INR today announced it awarded a major engineering and equipment supply contract to Danish firm FLSmidth.

FLSmidth will now develop Ioneer’s wholly-owned Rhyolite Ridge Lithium-Boron project in Nevada, US.

INR awarded the contract on a limited notice to proceed (LNTP) basis, with the supply of equipment conditional on a final investment decision (FID).

An LNTP contract is usually a notice by an employer instructing a contractor to commence with part of the works.

This often happens when not all conditions to fully proceed with the project have been fulfilled.

In these circumstances, the employer and contractor both share the risk for expenses incurred during the LNTP period.

FLSmidth has already started on product engineering for equipment packages, including crushing and material handling equipment, and lithium carbonate and boric acid dryers.

FLSmidth initiates financing options

On top of the engineering work, INR revealed that FLSmidth has ‘initiated discussions’ between Ioneer and Denmark’s Export Credit Agency regarding potential financing options.

Export credit agencies provide government-backed finance to help businesses grow their exports.

For instance, Export Finance Australia is the Australian government’s own ECA, which provides financial solutions to ‘drive sustainable growth that benefits Australia and our partners.’

If credit agencies sound familiar, that’s because INR is not the only emerging lithium player to court government-backed project finance.

Lake Resources NL [ASX:LKE] also floated the idea of securing finance for its Kachi lithium project via export credit agencies.

Last month, LKE flagged the possibility of acquiring lower-cost capital if it secures longer-date ECA-backed debt.

What did Ioneer management have to say?

INR Managing Director Bernard Rowe offered this comment:

‘The contract with FLSmidth is one of the more significant supply packages we will award at Rhyolite Ridge and represents another step in the development of the Project.

‘FLSmidth is focused on providing environmentally sound engineering and technology solutions.

‘This aligns with ioneer’s ambition to not only produce materials necessary for electric vehicles and renewable energy infrastructure, but to do so in an efficient and environmentally responsible.’

Investors may have noticed the emphasis on environmental responsibility echoes the sustainability stance taken by fellow lithium player Vulcan Energy Resources Ltd [ASX:VUL].

VUL has made sustainability its competitive differentiator.

Vulcan’s lithium project in the Upper Rhine Valley — dubbed the Zero Carbon Lithium Project — uses renewable heat derived from geothermal brine to drive the lithium extraction process.

VUL states this will involve no fossil fuel consumption.

INR Share Price ASX outlook

Investors will likely be pleased Ioneer has taken a major step towards developing its US lithium project.

But the modest share price gains may also indicate investors are aware of the long path ahead for the lithium and boron producer.

The engineering contract awarded to FLSmidth is a limited notice to proceed, dependant on plenty of conditions.

One of the biggest of those conditions, of course, is INR making a final investment decision.

Today’s announcement shows Ioneer is on track, but starting a journey is not the same as finishing it, so investors will likely continue to closely monitor INR’s progress.

The interest in lithium stocks is likely to intensify as governments and legacy automakers shift their focus to electric vehicles.

Therefore, if you want more information on a sector enjoying a resurgence, then I recommend reading our free lithium 2021 report.

If you’re keen for more reading, this report on energy disruption is also a great resource.

It analyses promising energy stocks and discusses why the energy market is ripe for massive disruption.

Regards,

Lachlann Tierney,
For Money Morning

PS: This free report reveals three stocks that could surge on the back of renewed demand for lithium in 2021. Click here to get your copy now.

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Lachlann Tierney

Lachlann’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • The first place to look thanks to the US/China truce
    By Callum Newman

    My colleague Greg Canavan, a true contrarian, is positioning in a spread of energy companies to take advantage of the very investor disinterest and lack of supply growth I just described. We know, too, that one of Warren Buffett’s last moves was to load up on American energy. Personally, I prefer something more durable and permanent…

  • The trade war is over. Tax cut chaos is next.
    By Nick Hubble

    Trump isn’t just imposing tariffs. He also wants to cut taxes. If the tariff tantrum gave us a taste for how he’ll go negotiate, hold on tight!

  • The Untold Tariff Story
    By Callum Newman

    The real tariff story isn't what you're reading in the headlines. It's not about short-term market volatility or quarterly earnings impacts. The true story – and the massive investment opportunity – is about the fundamental restructuring of American manufacturing that's now underway. Trump's tariffs are accelerating AI adoption in American industry. Today, I want to show you the companies that are emerging as the backbone of this transformation.

Primary Sidebar

Latest Articles

  • The first place to look thanks to the US/China truce
  • The trade war is over. Tax cut chaos is next.
  • The Untold Tariff Story
  • The Big Payday: Chasing Profits in Risky Places
  • China’s plan to pop the AI bubble and sink Mag7 for good

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988