5E Advanced Materials (FEAM) Water Tower Research Insights Conference summary

Market outlook and strategic importance

• Boron demand is growing at a 5.5% CAGR, driven by over 300 applications from industrial to specialty uses such as defense, semiconductors, and permanent magnets.

• The U.S. faces a supply deficit due to the recent exit of a domestic producer, intensifying reliance on a single supplier and increasing strategic urgency for domestic sources.

• The global boron market is an oligopoly, dominated by the Turkish government and a Rio Tinto subsidiary, with most other producers serving captive regional markets.

• Price increases and supply shortages are expected to ripple from the U.S. to Asian markets during upcoming contract negotiations.

• Domestic supply is now a single point of failure, with the second-largest U.S. asset expected to change ownership by year-end.

Project overview and competitive advantages

• The Fort Cady project is one of only a few large, economic boron deposits globally, with a multi-generational resource and all major permits secured.

• The deposit's colemanite mineralogy allows for easy leaching, reducing technical risk and supporting a 40-year reserve life, expandable with additional wells.

• Strategic location near major infrastructure, ports, and utilities enhances cost competitiveness and market access.

• The project is positioned to be second on the global cost curve, benefiting from higher boron prices and improved cost structure.

De-risking and operational validation

• Two years of pilot plant operations have provided extensive data, validating in-situ leaching for boron and confirming consistent head grades and impurity profiles.

• Vendor and OEM testing have locked down the process flow sheet, minimizing engineering risk and ensuring equipment compatibility.

• On-spec product has been produced and used for customer qualification, supporting future offtake agreements.