Oct 31 (Reuters) - Environmental and Indigenous groups

on Thursday filed a lawsuit challenging the U.S. Interior

Department's approval of ioneer's Rhyolite Ridge

lithium mine in Nevada, the first domestic source of the battery

metal to be permitted by Democratic President Joe Biden's

administration.

In a lawsuit filed in federal court in Las Vegas, groups

including the Center for Biological Diversity argued the project

posed an existential risk to the rare wildflower Tiehm's

buckwheat and could drive it to extinction.

They said the mine would also adversely impact groundwater,

springs, wetlands, air quality, cultural resources and wildlife

habitat and would transform a remote part of rural Nevada into a

sprawling industrial complex.

Yet the groups said the Interior Department's Bureau of Land

Management approved the mine without ensuring it would not

jeopardize the wildflower or unduly impact the environment in

violation of the National Environmental Policy Act, the Federal

Lands Policy and Management Act, and the Endangered Species Act.

The Interior Department and ioneer did not immediately

respond to requests for comment.

The Australia-based critical minerals miner received

approval for the mine last week following a more-than six-year

review process during which regulators, ioneer and

conservationists tussled over the fate of Tiehm's buckwheat.

The permit cleared the way for development of a mine that

will become a key supplier to Ford Motor ( F ) and other

electric-vehicle manufacturers. It was issued amid a flurry of

recent moves by Biden administration officials to support

critical minerals production and offset China's market

dominance.

The permit also unlocked a $700 million loan from the U.S.

Department of Energy, as well as a $490 million equity

investment from Sibanye Stillwater to fund the project.

The Interior Department said when it approved the mine that

it had taken numerous steps to protect the ecosystem near the

mine site, roughly 225 miles (362 km) north of Las Vegas.

The project contains enough lithium to power roughly 370,000

EVs each year. Construction is slated to begin next year, with

production commencing by 2028.