Hyundai Engineering to Participate in the U.S. Lithium and Boron Project Worth KRW 3 Trillion

Hyundai Engineering signed a memorandum of understanding (MOU) with Ioneer, an Australian critical mineral developer, in Washington, D.C. on July 7 local time, to carry out procurement services for the “Rhyolite Ridge Lithium-Boron Project.” This agreement builds on the letter of intent (LOI) submitted in June and confirms the scope of cooperation between the two parties, thereby formalizing participation in the business.

With a total project cost of approximately $2 billion (about KRW 3.1 trillion), the project will be carried out at the Rhyolite Ridge mine in Nevada, USA. The area is regarded as North America’s largest lithium-boron composite deposit, and has very high strategic value because it enables the simultaneous acquisition of lithium—an essential raw material for electric vehicle batteries—and boron, which is used in semiconductors and advanced materials.

This project is classified as a core initiative to establish a stable strategic resource supply system within the United States amid the global supply chain restructuring. In October, it already obtained the final federal approval from the U.S. Bureau of Land Management (BLM), thereby eliminating permitting risk, and financial support of approximately $1 billion from the U.S. Department of Energy (DOE) has also been confirmed.

Ioneer, the project operator, is a Nasdaq-listed company and holds 100% ownership of the mine. They plan to directly produce lithium carbonate and boric acid at the mine site using process optimization technology, while Hyundai Engineering will take charge of the procurement of the key equipment and materials required for this process, helping the project settle successfully.

Officials from the Ministry of Land, Infrastructure and Transport and the Korea Overseas Infrastructure and Urban Development Support Corporation (KIND) attended the signing ceremony to lend support. In particular, KIND is known to be considering participation in equity investment in this project.

Government-level cooperation and policy financial support are becoming a solid backing for domestic companies to take root in the North American critical mineral market, which has high entry barriers. With this project as a turning point, Hyundai Engineering plans to strengthen its competitiveness in the critical minerals sector while actively identifying new business opportunities within the North American market.

A Hyundai Engineering official said, “We feel a great sense of responsibility to participate in a critical minerals supply chain project that the U.S. government is pursuing with priority,” and added, “Based on the know-how accumulated in the global plant market, we will carry out the project successfully and continue to expand our business territory.”

Biz Korea Lee Kwang-soo (pr@businesskorea.co.kr)