US Strategic Metals (USSM) has announced the receipt of a non-binding letter of interest (LOI) from the Export-Import Bank of the US (EXIM Bank) for a potential $400m debt funding package.

The loan, with a term of up to 15 years, is intended to support the development of USSM's mining and metallurgical project in Missouri.

This aligns with EXIM Bank's China and Transformational Export Program (CTEP), which aims to bolster US businesses competing with Chinese companies in sectors such as renewable energy and energy efficiency.

EXIM Bank's support for USSM could strengthen the US supply chain for critical minerals, essential for lithium-ion batteries and advanced superalloys.

The proposed EXIM loan, combined with USSM's existing equity and credit lines, is expected to cover the majority of the construction and development costs for the Missouri project.

This financial support is crucial for USSM to advance its strategic partnerships and enhance domestic processing capabilities in the US.

Upon USSM's formal application for the loan, EXIM Bank will initiate a thorough due diligence process.

This will include comprehensive underwriting to establish the loan's terms and conditions, ensuring the project's alignment with EXIM Bank's funding criteria and objectives.

In March this year, Australian Strategic Materials received a non-binding and conditional LOI from EXIM Bank.

The LOI paved the way for a potential debt funding package of up to $600m (A$908.34m) to support the Dubbo rare earths project in New South Wales, Australia.

EXIM Bank’s backing is dependent on certain factors such as the utilisation of US materials throughout construction.