5E's project qualifies under the Export-Import Bank of the United States' Make More in America Initiative
Letter of Interest will consider potential future funding of $285 million of 5E's project costs
Initial program qualification is based on U.S. exports of boric acid and the number of U.S. jobs created
HESPERIA, Calif., Sept. 30, 2024 (GLOBE NEWSWIRE) -- 5E Advanced Materials, Inc. (NASDAQ:FEAM) (ASX: 5EA) ("5E" or the "Company"), a boron and lithium company in southern California, announced that it received a non-binding Letter of Interest ("LOI") from the Export-Import Bank of the United States ("EXIM"). The LOI outlines the potential for the creation of a debt facility to backstop project debt financing of up to $285 million, which would be utilized for commercial scale development and construction of 5E's Boron Americas Complex. The potential debt funding package would carry a repayment tenor of up to 15 years under EXIM's Make More in America Initiative. 5E's Boron Americas Complex is designated as Critical Infrastructure by the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency.
"The United States has set a clear initiative to derisk from adversaries and establish secure and reliable domestic supply chains," said Paul Weibel, Chief Executive Officer at 5E Advanced Materials. "Programs like EXIM's Make More in America Initiative are a precise prescription to ensure critical materials such as boron are produced on U.S. soil, drive domestic benefits and progress for the U.S. economy, and provide the foundation to the boron supply chain where valued-added derivatives are vital to the U.S. defense and industrial base. We are pleased to receive this LOI. 5E looks forward to exploring partnership with EXIM as we initiate diligence to secure a loan commitment for our project finance facility."
Given the significant demand growth for boron and boron derivatives, and the associated vulnerabilities of the boron supply chain, the LOI demonstrates a growing awareness and commitment by the U.S. government to securing an integrated boron supply chain. EXIM's ‘Make More in America Initiative' is part of a whole-of-government effort to strengthen America's supply chains, support American jobs and boost America's ability to compete with countries like China, especially in sectors critical to national security.
Boron, known for its strength, stability, and light weight properties, is one of the most versatile materials in the world. It is used in ...
