IperionX Limited is pleased to announce that it has received a Letter of Interest (“LOI”) from the Export-Import Bank of the United States (“EXIM Bank”) for a preliminary amount of US$11.5 million for 7-year equipment financing for the development of IperionX’s titanium production facility in Halifax County, Virginia.
EXIM Bank has informed IperionX that the proposed titanium production facility may fall under both EXIM Bank’s ‘China and Transformational Exports Program’ and ‘Make More in America Initiative’. These programs support projects that reduce China’s dominant position in strategic sectors and promote exports.
IperionX plans to use the financing for essential production equipment, such as industrial furnaces and crushing equipment. The company intends to build a titanium production facility in Virginia with a capacity of 125 metric tons per year, with first production expected in 2024. Once operational, IperionX plans to gradually increase the capacity of this advanced titanium production facility to 1,125 metric tons per year.
Titanium is sought after for its high strength-to-weight ratio, heat resistance and corrosion resistance. It plays a critical role in many U.S. defense systems and has applications in areas such as aerospace, medical, consumer electronics, 3D printing and automotive.
IperionX has the capability to provide a complete U.S. titanium supply chain from titanium mineral production to high-performance titanium product manufacturing, including the use of 100% recycled scrap titanium. The company can produce a variety of titanium products, and do so in a more energy-efficient, cost-effective and environmentally friendly manner.
Although the letter of intent is not binding, the potential financing from EXIM Bank provides IperionX with a solid foundation for the development of the planned titanium production facility.
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.”