IperionX, the leading American titanium metal and critical materials producer announces a provisional grant of $11.5m from EXIM Bank to develop its proposed titanium production facility in Halifax County, Virginia
IperionX has received a Letter of Interest (LOI) from the Export-Import Bank of the United States (EXIM Bank) for $11.5 million in equipment finance with a repayment tenor of 7 years. The company has received notification from EXIM that the proposed titanium production facility may qualify for equipment finance under both EXIM’s ‘China and Transformational Exports Program’ and ‘Make More in America Initiative’. These two programmes enable EXIM to extend its existing medium and long-term loan and loan guarantee programs to support projects that reduce Chinese dominance in strategic sectors and advance export-orientated domestic projects, such as IperionX’s proposed titanium production facility in Virginia.
EXIM is the official export credit agency of the US Government. It is an independent Executive Branch agency with a mission of supporting U.S. jobs by facilitating the export of US goods and services. The Make More in America Initiative (MMIA) was developed in response to President Biden’s Executive Order 14017 on American Supply Chains and provides USA manufacturers new access to capital to fill critical supply chain gaps, and was approved by EXIM’s Board of Directors in April 2022. MMIA’s objective is to unlock financing for U.S. manufacturing and close critical supply chain gaps, especially in sectors critical to national security. Under MMIA, EXIM is able make available the agency’s existing medium- and long-term loan, loan guarantee, and insurance programs to export-oriented domestic projects such as ICO.
The China and Transformational Exports Program (CTEP) was established through a December 2019 Congressional reauthorisation of EXIM’s charter. Under CTEP’s mandate, EXIM is authorised to help US exporters facing competition from China and to ensure that the USA continues to lead in key strategic areas critical to national security, including renewable energy, storage and efficiency. CTEP supports the extension of EXIM loans, guarantees and insurance, at rates and on terms and other conditions, to the extent practicable, that are fully competitive with rates, terms and other conditions established by China.
Titanium production facility in Virginia
IperionX intends to apply equipment finance from EXIM Bank towards key production assets including industrial furnaces and comminution equipment, expected to cost approximately $11.5m. As a producer of sustainable and low-cost titanium, IperionX plans to build a 125 metric ton per annum (mtpa) titanium production facility in Virginia, with first production expected in 2024. Once commissioned, IperionX intends to rapidly scale the capacity of this advanced titanium production facility – in a modular development approach – to 1,125 mtpa on the same site.
Titanium is prized for its high strength-to-weight ratio, resistance to high temperatures and corrosion. It is a critical material for many US defence systems and for a range of demanding applications in the aerospace, space, medical, consumer electronics, additive manufacturing, hydrogen and automotive sectors.
IperionX has the potential to deliver a full US titanium supply chain from titanium mineral production to the manufacturing of high performance titanium products, and the unique ability to use 100% recycled scrap titanium. IperionX can produce a wide range of titanium products - including titanium powder, ingots, bars, and plate – at higher energy efficiency, lower costs, and with lower environmental impacts.
While the LOI is non-binding and conditional, the potential funding support from EXIM Bank provides IperionX with a strong foundation as it advances a range of competitive funding options for its proposed Titanium Production Facility. IperionX does not intend to advise or update the market with respect to any EXIM Bank financial support application or discussion, unless the Company reaches a definitive agreement for U.S. government financial support.
Sustainable and fully integrated US titanium supply chain
Anastasios (Taso) Arima, IperionX CEO said: “Titanium for the US manufacturing sector is currently sourced over long distances from foreign nations. We are pleased to receive the letter of interest for the provisional sum of $11.5m in equipment finance from US EXIM that will assist IperionX to re-shore a lower-cost, more sustainable and fully integrated US titanium supply chain that is critical both for the manufacturing of advanced goods as well as for America’s national security.” IperionX aims to become a leading American titanium metal and critical materials company – using patented metal technologies to produce high performance titanium alloys, from titanium minerals or scrap titanium, at lower energy, cost and carbon emissions.
The company's Titan critical minerals project is the largest JORC-compliant mineral resource of titanium, rare earth and zircon minerals sands in the United States. The company’s titanium metal and critical minerals are essential for advanced industries including space, aerospace, defence, consumer electronics, hydrogen, electric vehicles and additive manufacturing.