Sept 19 (Reuters) - The Biden administration on Thursday

published a key environmental report for ioneer's

Rhyolite Ridge lithium mine in Nevada, the last step needed

before approving what would become one of the largest U.S.

sources of the electric vehicle battery metal.

The move comes after a review process of more than six years

and as part of Washington's ongoing efforts to boost domestic

critical minerals production and offset China's market

dominance. If approved, the mine would be the first lithium

project permitted by Biden officials.

The U.S. Bureau of Land Management (BLM) published a final

environmental impact statement that sets in motion a review

period of at least 30 days before a record of decision -

essentially a mine's permit - can be issued. The BLM also

published an opinion on how a rare flower at the mine site can

best be protected.

Shares of ioneer trading in New York jumped 11% on Thursday

morning.

The proposed mine, roughly 225 miles (362 km) north of Las

Vegas, contains one of North America's largest sources of

lithium and could produce enough of the metal to power roughly

370,000 EVs each year. Ford Motor ( F ) signed a binding supply

agreement in 2022 with ioneer.

CRITICAL MINERAL

The U.S. Geological Survey has labeled lithium a critical

mineral vital for the U.S. economy and national security. As

part of a push to boost domestic production, the U.S. Department

of Energy last year said it would lend ioneer up to $700 million

to develop the mine.

The site is also home to the Tiehm's buckwheat flower, which

is found nowhere else on the planet and was declared an

endangered species in 2021. Some conservation groups thus oppose

ioneer's project, making it a lightning rod in the debate over

whether biodiversity matters more than the fight against climate

change.

The BLM said on Thursday that it worked with the U.S. Fish

and Wildlife Service and the company to craft "significant

protections for the plant," including changing mine design plans

and a formal protection plan.

"We're steadfast in our commitment to be responsible

stewards of our public lands as we deliver the promise of a

clean energy economy," said BLM director Tracy Stone-Manning.

The 30-day review process for the environmental report is a

routine part of the federal permitting process.

Bernard Rowe, ioneer's CEO, said the report reflects the

company's willingness to work with the government to protect the

flower and develop a domestic source of lithium.

"It's a testament to the approach that we took, and that was

one of engagement, addressing the sensitive issues, seeing if we

can come up with solutions. And we've done that," Rowe told

Reuters.

The mysterious death of more than 17,000 flowers near the

mine site in 2020 sparked allegations from conservationists of a

"premeditated" attack. Australia-based ioneer denied harming the

flowers. The U.S. government later blamed thirsty squirrels.

South Africa's Sibanye Stillwater agreed in 2021 to

buy half of the project for $490 million, but only once ioneer

obtains final permits.