U.S. Strategic Metals (USSM) announced it has secured nearly $500 million in funding and commitments. This financial boost, led by a $230 million commitment from Appian Capital Advisory LLP, will primarily enhance USSM's mining, recycling and processing operations in Fredericktown, MO.
The latest financing includes a $120 million secured term loan facility and a $70 million secured royalty financing arrangement from affiliates of Appian Capital Advisory LLP. J.P. Morgan served as structuring agent to USSM. With these funds, USSM is poised to commission the first commercial phase of its operations by the end of 2024.
USSM's initiative, already buoyed by an investment exceeding $250 million, focuses on developing a unique, environmentally responsible technology, pivotal in processing and recovering essential battery minerals such as cobalt, nickel, lithium and copper. USSM's approach not only offers superior logistics but also promises long-term, sustainable employment opportunities, particularly benefiting the marginalized rural community in the region.
USSM aims to establish itself as the first major near-term solution in the U.S. for recycling and processing battery critical minerals, aiming to reduce the current dependence on sourcing from China. This step is crucial in fortifying the country's resilience in the green energy sector and reducing reliance on global supply chains.
The Fredericktown site, a focal point of USSM's operations, has already witnessed considerable investment, including contributions from Waterfield Holdings, Stacy W. Hastie, HPS Investment Partners and Glencore. These investments have facilitated the advancement of development and initial construction for the first phase of commercial processing. The new round of funding is expected to finalize this phase and expand mine development.
"This new round of investment will enable USSM to complete its first full phase, expected to process 240 tons of feedstock per day, a significant milestone," said Hastie, CEO of USSM. He emphasized USSM's unique capacity to process various metallic feedstocks, including recycled lithium-ion batteries, battery production scrap, mixed metal concentrate and traditional ore, making it a one-of-a-kind operation in the U.S.
Michael W. Scherb, founder and CEO of Appian, echoed this sentiment, noting the critical role USSM will play in shaping the U.S. battery recycling landscape and establishing a domestic supply of essential minerals for energy transition.
Missouri Gov. Mike Parson commended USSM's achievement, highlighting the dual benefits of job creation and strengthening supply chains. This investment is poised to position Missouri and the nation as less reliant on international sources like China and as a leader in domestic battery production and critical mineral exploration.
