The Elements of Innovation Discovered
The Elements of Innovation Discovered
Metal Tech News - August 9, 2024
U.S. Strategic Metals is developing a cobalt-copper-nickel mine and battery materials processing and recycling plant just outside of Fredericktown, Missouri.
Export-Import Bank of the United States has become an increasingly important source of funding for the development of domestic critical mineral projects.
In what is shaping up to be a major boost to its mission to provide the United States with sustainable sources of metals critical to the energy transition, U.S. Strategic Metals (USSM) has been invited to apply for a $400 million loan from the Export-Import Bank of the United States (EXIM) to fund the development of its mining and metallurgical project in Missouri.
Since its formation in 2018, Missouri-based USSM has evolved from a mine site cleanup and reclamation company into a mining tech company that is developing a state-of-the-art plant to recover metals from third-party concentrates and recycled lithium-ion batteries. The company is also advancing a mine in Missouri that hosts one of the largest reserves of cobalt needed for lithium-ion batteries in the U.S., as well as nickel and copper, which are also needed for the energy transition.
Earlier this year, USSM forged a partnership with Missouri University of Science and Technology to advance research on precursor cathode active material (pCAM), a powder-like substance containing nickel, cobalt, and other materials for the anode side of lithium batteries.
"Precursor cathode active material or pCAM production is the missing link in the U.S. battery supply chain and with this collaboration with Missouri S&T and the support of Missouri DED (Department of Economic Development) we will continue to be on the front lines of the solution," said U.S. Strategic Metals CEO Stacy Hastie.
Under the collaboration, USSM is providing training for Missouri S&T personnel and students on the use of its pCAM processing facilities.
In exchange, Missouri S&T is working with USSM to help optimize the solvent extraction process to effectively recover and synthesize these precursor materials.
USSM hopes this will aid it in rapidly advancing the completion of a battery critical minerals recycling and processing solution to reduce sourcing dependence on China.
Export-Import Bank of the United States has become an increasingly important source of funding for the development of domestic critical mineral projects.
To help fund the planned battery materials production and recycling plant in Missouri, EXIM has sent USSM a letter of interest for a potential $400 million loan with a term of 15 years.
This transaction may be eligible for special consideration under EXIM's China and Transformational Export Program, a congressional mandate for the U.S.'s official export credit agency to help American companies in the renewable energy space that must compete with China-backed companies.
With the funds loaned by EXIM, USSM could finalize its plans to provide an alternative to China for energy transition metals and advance strategic partnerships for domestic processing.
This potential loan will add to the nearly $230 million in funding commitments from affiliates of Appian Capital Advisory LLP announced by USSM late last year, as well as around $250 million in previous funding from Glencore and others.
"Appian is excited to partner with USSM to develop its cobalt-nickel mine and battery recycling and mineral processing operation in Missouri," said Appian Capital CEO Michael Sherb. "USSM will shape the battery recycling landscape in the U.S. and play a critical role in establishing a domestic supply of essential minerals for the energy transition."
USSM also benefits from Show-Me-State support.
"Not only will this investment create good-paying job opportunities in the region, but it will also strengthen supply chains and allow Missouri and the nation to be less reliant on nations like China," Missouri Gov. Mike Parson said in December. "The demand for domestic battery production and critical mineral exploration is on the rise, and this investment proves Missouri is well-positioned to capitalize on that opportunity and emerge as a national leader."
Establishing Missouri as a domestic battery materials hub could be further bolstered by the EXIM loan.
USSM plans to file a formal loan application, which will trigger a more comprehensive due diligence process by EXIM to determine the appropriate terms and conditions of the loan.
With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.
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