IperionX Limited (NASDAQ: IPX, ASX: IPX), a leading producer of high-performance titanium products, today announced that it has received a Letter of Interest ("LOI") from the Export-Import Bank of the United States ("EXIM Bank") offering a provisional equipment finance of US$11.5 million. This finance is intended for the development of IperionX’s Titanium Production Facility located in Halifax County, Virginia, and is repayable over a tenure of seven years.
This promising development follows EXIM's evaluation of IperionX’s project for eligibility under both its 'China and Transformational Exports Program' and the 'Make More in America Initiative'. These schemes are crafted to diminish Chinese dominance in critical sectors while amplifying export-focused domestic projects, such as the proposed Titanium Production Facility by IperionX in Virginia.
With this finance, IperionX plans to invest in essential production assets, notably including industrial furnaces and comminution equipment, which are estimated to cost around $11.5 million.
Once operational in 2024, the titanium production facility in Virginia is projected to have an initial capacity of 125 metric tons per annum. IperionX has further intentions to magnify this capacity through a modular development strategy, targeting a grand total of 1,125 metric tons per annum on the same Virginia site.
Recognized for its unparalleled strength-to-weight ratio and exceptional resistance to high temperatures and corrosion, titanium is an indispensable material for numerous U.S. defense systems. Additionally, its wide applicability spans across sectors such as aerospace, space, medical, consumer electronics, additive manufacturing, hydrogen, and automotive.
IperionX’s unique proposition lies in its potential to pioneer a complete U.S. titanium supply chain - stretching from titanium mineral production to manufacturing superior titanium products. The company also boasts a singular capability to utilize 100% recycled scrap titanium, making their production more energy-efficient, cost-effective, and environmentally friendly.
Although the LOI remains non-binding and contingent, it certainly provides IperionX with a sturdy foundation as the company continues to explore diverse competitive funding avenues for its much-anticipated Titanium Production Facility. As for now, IperionX has chosen not to disclose or update the public regarding any EXIM Bank financial support discussions or applications, unless a conclusive agreement for U.S. government financial backing is achieved.
Anastasios (Taso) Arima, IperionX CEO said:
“Titanium for the U.S. 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 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.”
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.