Boron and lithium company 5E Advanced Materials has obtained a non-binding letter of interest (LOI) from the Export-Import Bank of the United States (EXIM).

This LOI indicates the possibility of establishing a debt facility of up to $285m to support the commercial scale development and construction of the company's Boron Americas Complex in southern California.

5E Advanced Materials is set to leverage the potential debt facility, which would have a repayment tenure of as long as 15 years, as part of EXIM's Make More in America Initiative.

The funds are expected to accelerate the commercial-scale development of the Boron Americas Complex, which has been recognised as critical infrastructure by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency.

The company expects to submit a formal application to EXIM in 2025.

Following the application, EXIM will commence due diligence processes to decide on issuing a final commitment.

The final decision will adhere to EXIM's policies, eligibility criteria and underwriting standards including the terms and conditions to be met.

However, the LOI does not guarantee funding or suggest the project's financial or operational feasibility. Instead, it serves as an initial expression of interest, subject to further evaluation and compliance with EXIM's stringent conditions.

5E Advanced Materials CEO Paul Weibel said: “The United States has set a clear initiative to derisk from adversaries and establish secure and reliable domestic supply chains.

“Programmes 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.

“5E looks forward to exploring partnership with EXIM as we initiate diligence to secure a loan commitment for our project finance facility.”