5E Advanced Materials (ASX:5EA) has received a non-binding letter of interest from the Export-Import Bank of the United States (EXIM) for up to $285 million debt financing, under the Make More in America initiative.
The funding package, which will carry a repayment tenor of up to 15 years, would be used for commercial scale development and construction of 5E’s Boron Americas Complex in the US.
The Boron Americas Complex is designated as critical infrastructure by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency.
CEO Paul Weibel says the US has set a clear initiative to derisk from adversaries and establish secure and reliable supply chains.
“Programs like EXIM’s Make More in America initiative are a precise prescription to ensure critical materials such as boron are produced on US soil, drive domestic benefits and progress for the US economy, and provide the foundation to the boron supply chain where valued-added derivatives are vital to the US defence and industrial base,” Weibel says.
“We are pleased to receive this letter of interest. 5E looks forward to exploring partnership with EXIM as we initiate diligence to secure a loan commitment for our project finance facility.”
5E Advanced Materials, which has a market capitalisation of $50.93 million, expects to submit a formal application to EXIM next year.
Once the application is received, EXIM will begin the necessary due diligence to determine if a final commitment may be issued.
A final commitment, if any, must comply with EXIM policies and eligibility requirements. The final commitment will depend on meeting the bank’s underwriting criteria, authorisation process, finalisation, and satisfying any terms and conditions.
5E says given the significant demand growth for boron and boron derivatives, alongside the associated vulnerabilities of the boron supply chain, the letter of interest shows a growing awareness and commitment by the US Government to securing an integrated boron supply chain.
Boron is considered a trace element that is naturally present in several foods and available as a dietary supplement. It is known for its strength, stability, and lightweight properties.
The trace element is used in more than 300 applications, including permanent magnets, EVs, wind turbines, solar panels, glass, fertilisers, body and vehicle armour, weapons systems, aerospace ceramics, and pharmaceuticals.
5E Advanced Materials is focused on becoming a vertically integrated global supplier of boron speciality and advanced materials, complemented by lithium co-product production.
Write to Aaliyah Rogan at Mining.com.au
Images: 5E Advanced Materials
