IperionX Limited, a producer of sustainable titanium technology, announced that it has received a Letter of Interest (LOI) from the Export-Import Bank of the United States (EXIM Bank), outlining a preliminary equipment finance offer totalling USD 11.5 million.
This financing is designated for the development of IperionX’s Titanium Production Facility, located in Halifax County, Virginia, and is set to be repaid over a seven-year period, the company said in an ASX announcement.
The receipt of this LOI marks a significant milestone for IperionX and follows EXIM Bank’s evaluation of the company’s project for eligibility under both its ‘China and Transformational Exports Program’ and the ‘Make More in America Initiative.’
These programs are specifically designed to reduce Chinese dominance in critical sectors while boosting export-focused domestic ventures, such as IperionX’s proposed Titanium Production Facility in Virginia.
With this financial support, IperionX also intends to invest in crucial production assets, particularly industrial furnaces and comminution equipment, which are estimated to amount to approximately $11.5 million.
Scheduled to commence operations in 2024, the titanium production facility in Virginia is expected to have an initial capacity of 125 metric tons per annum.
IperionX has further ambitions to expand this capacity through a modular development strategy, ultimately targeting a total output of 1,125 metric tons per annum at the same Virginia location.
Titanium, renowned for its remarkable strength-to-weight ratio and exceptional resistance to high temperatures and corrosion, plays a vital role in various US defence systems.
Its applications extend across multiple sectors, including aerospace, space, medical, consumer electronics, additive manufacturing, hydrogen technology, and the automotive industry.
While the LOI from EXIM Bank is not legally binding and remains contingent, it provides IperionX with a solid foundation as the company actively explores various competitive funding options for its eagerly anticipated Titanium Production Facility.
Currently, IperionX has opted not to disclose or update the public regarding any discussions or applications for financial support from EXIM Bank, except in the event of reaching a final agreement for U.S. government financial backing.
IperionX CEO Anastasios Arima expressed that the company is pleased to have received a letter of interest for the provisional equipment finance of $11.5 million from US EXIM.
“We are pleased to receive the letter of interest for the provisional sum of US$11.5 million in equipment finance from US EXIM that will assist IperionX to re-shore a lower-cost, more sustainable and fully integrated U.S. titanium supply chain that is critical both for the manufacturing of advanced goods as well as for America’s national security,” he explained.
