- 5E signs Letter of Intent with Estes Energetics to collaborate in producing boron advanced materials for solid rocket motors to support the U.S. space and military industries
- Collaboration aligns with U.S. government initiatives and programs to onshore production of critical materials and to lessen reliance on Chinese supply chain
- Estes Energetics is a U.S. based company and supplier to the U.S. Department of Defense
- LOI aligns with 5E’s strategy to become a vertically integrated global leader in the supply of boron specialty and advanced materials
HOUSTON, Dec. 13, 2022 (GLOBE NEWSWIRE) — 5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) (“5E” or the “Company”), a boron and lithium company with U.S. government Critical Infrastructure designation for its 5E Boron Americas (Fort Cady) Complex, has entered into a non-binding letter of intent (“LOI”) with Estes Energetics to collaborate in producing boron advanced materials for solid rocket motors to support the U.S. space and military industries.
Under the terms of the LOI, 5E and Estes will work towards a binding agreement for the supply of boron advanced materials, which are used in the manufacture of solid rocket motor ignitors. 5E and Estes Energetics will also consider a broader collaboration focused on partnering on production facilities, business development activities and sharing technical know-how for the purpose of developing boron advanced materials and proprietary intellectual property targeting space and military applications. The boron advanced materials used by Estes Energetics and under the terms of the LOI, align with recent U.S. government initiatives and programs as they are critical in military munitions and civilian applications and are subject to supply risk given overseas supply concentration and U.S. reliance on imports.
Estes Energetics is a defense and industrial company that researches, designs, engineers, manufactures, tests, and integrates solid-propellant rocket motors, energetics, critical chemicals, and associated technologies for government and commercial customers. It combines practical propulsion solution development with advanced aerospace research and development under one team. Estes Energetics has engineering, manufacturing, and test facilities in Penrose, Colorado and Minden, Louisiana. Estes Energetics was spun off from Estes Industries, who is the world leader in model rocketry with more than 60 years of experience producing solid-propellant rocket motors.
Commenting on the LOI with Estes Energetics, Dr. Dino Gnanamgari, 5E Chief Commercial Officer noted:
“We look forward to a broad collaboration with Estes focusing on boron advanced materials necessary for space and military applications. Estes is an industry leader in the solid-propellant and aerospace markets.
An important consideration of the collaboration is our combined mission to onshore critical materials and technologies that serve critical U.S. government needs. We intend to have a long-term partnership with Estes as we focus on continuous innovation in the boron advanced materials space.
Today’s announcement continues to deliver on our strategy to become a vertically integrated global leader in the supply of boron specialty and advanced materials.”
Commenting on the LOI with 5E, Karl Kulling, Estes Chief Executive Officer noted:
“There is a growing awareness of supply chain risk in the US. By collaborating with 5E, we are building a supply chain that starts from a domestic mine and continues all the way through products broadly used in solid rocket motors, pyrotechnics, and other applications. Boron advanced materials complement our existing manufacturing and research efforts in critical chemicals and solid rocket motors. Boron is used in mature products and has great promise in high-performance fuels.”
About 5E Advanced Materials, Inc.
5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) is focused on becoming a vertically integrated global leader and supplier of boron specialty and advanced materials, complemented by lithium co-product production. The Company’s mission is to become a supplier of these critical materials to industries addressing global decarbonization, food and domestic security. Boron and lithium products will target applications in the fields of electric transportation, clean energy infrastructure, such as solar and wind power, fertilizers, and domestic security. The business strategy and objectives are to develop capabilities ranging from upstream extraction and product sales of boric acid, lithium carbonate and potentially other co-products, to downstream boron advanced material processing and development. The business is based on our large domestic boron and lithium resource, which is located in Southern California and designated as Critical Infrastructure by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency.
Forward Looking Statements and Disclosures
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical fact included in this press release regarding our business strategy, plans, goal, and objectives are forward-looking statements. When used in this press release, the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “budget,” “target,” “aim,” “strategy,” “estimate,” “plan,” “guidance,” “outlook,” “intent,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on 5E’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the extraction of the critical materials we intend to produce and advanced materials production and development. These risks include, but are not limited to: our limited operating history in the borates and lithium industries and no revenue from our proposed extraction operations at our properties; our need for substantial additional financing to execute our business plan and our ability to access capital and the financial markets; our status as an exploration stage company dependant on a single project with no known Regulation S-K 1300 mineral reserves and the inherent uncertainty in estimates of mineral resources; our lack of history in mineral production and the significant risks associated with achieving our business strategies, including our downstream processing ambitions; our incurrence of significant net operating losses to date and plans to incur continued losses for the foreseeable future; risks and uncertainties relating to the development of the Fort Cady project, including our ability to timely and successfully complete our Small Scale Boron Facility; and other risks. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. No representation or warranty (express or implied) is made as to, and no reliance should be place on, any information, including projections, estimates, targets, and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions, or misstatements contained herein. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as to the date of this press release.
For additional information regarding these various factors, you should carefully review the risk factors and other disclosures in the Company’s Form 10-K filed on September 28, 2022. Additional risks are also disclosed by 5E in its filings with the U.S. Securities and Exchange Commission, throughout the year, including its Form 10-K, Form 10-Qs and Form 8-Ks, as well as in its filings under the Australian Securities Exchange. Any forward-looking statements are given only as of the date hereof. Except as required by law, 5E expressly disclaims any obligation to update or revise any such forward-looking statements. Additionally, 5E undertakes no obligation to comment on third party analyses or statements regarding 5E’s actual or expected financial or operating results or its securities.
Authorized for release by: David Salisbury, Chairman of the Board of Directors
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