American Pacific Borates Limited (ASX:ABR) has entered into a non-binding letter of intent agreement (LOI) with Borman Specialty Materials for the supply of Boron specialty advanced materials from its Fort Cady Integrated Boron Facility in Southern California.
CEO, Henri Tausch, said that under the terms of the LOI, the parties will work towards a binding agreement for the supply of Boric Acid, and other Boron specialties, which will be used to manufacture products with critical applications for future facing global markets including the semiconductor, life sciences, aerospace, military and automotive markets.
We look forward to working with Borman Specialty Materials who have over 80 years operating experience in global markets, on the potential to supply specialty Boron advanced materials that will be produced for critical future facing applications,” Mr Tausch said.
“With partners now engaged for our planned SOP and Borates products, and with increasing favourable market conditions, the Company is fast moving towards initial production of boron specialty advanced materials from its small-scale boron facility in CY2022.”
Mr Tausch said ABR continues to conduct market studies with the focus remaining on high-margin, high-performance boric acid derivate products that support global decarbonization strategies for the electrification of transport, clean energy production, food security, and energy storage applications.
He said the LOI with Borman, supplements the earlier LOI with Compass Minerals America Inc. for a partnership to sell SOP from the Fort Cady Integrated Boron Facility.
“The partnerships with Borman and Compass demonstrate a visible pathway for ABR to support targeted first production of Boron specialty advanced materials in 2H CY2022 for its small-scale boron facility.”
North American Supply Constraints
The company is receiving ongoing feedback from market participants that Boron supply is constrained in the North American market.
Further tightening of North American markets has seen pricing nearing US$900/ tonne for boric acid, 20% higher than the US$750/ tonne used in previous Company studies.
These market conditions continue to provide a positive outlook with respect to ABR’s focus on a US listing and the aspiration to become a globally significant producer of Boron specialty products and advanced materials.
About Borman Specialty Materials
Borman Specialty Materials is North America’s leading global producer (and the only North American producer) of boron trichloride (BCL3), which is critical for the manufacture of semiconductors, LED and LCD screens, epoxy resins, pharmaceuticals, and boron fibres.
The company has been operating for over 80 years producing advanced boron and battery materials from its zero-carbon facility based in Southern Nevada.
In addition to the production of boron products, Borman is also a leading producer of Electrolytic Manganese Dioxide (EMD), the main component of the cathode material in modern alkaline, lithium, and sodium batteries. Borman’s next generation, high-grade manganese-based cathode materials – Lithium Manganese Oxide (LMO) and Lithium Manganese Nickel Oxide (LMNO) – for rechargeable batteries, showcase the United States’ move towards a clean energy future.