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5E Advanced Materials Signs Letter of Intent With Estes Energetics

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5E Advanced Materials, Inc., a boron and lithium company with U.S. government Critical Infrastructure designation for its 5E Boron Americas (Fort Cady) Complex, has entered into a non-binding letter of intent (“LOI”) with Estes Energetics to collaborate in producing boron advanced materials for solid rocket motors to support the U.S. space and military industries.

Under the terms of the LOI, 5E and Estes will work towards a binding agreement for the supply of boron advanced materials, which are used in the manufacture of solid rocket motor ignitors. 5E and Estes Energetics will also consider a broader collaboration focused on partnering on production facilities, business development activities and sharing technical know-how for the purpose of developing boron advanced materials and proprietary intellectual property targeting space and military applications. The boron advanced materials used by Estes Energetics and under the terms of the LOI, align with recent U.S. government initiatives and programs as they are critical in military munitions and civilian applications and are subject to supply risk given overseas supply concentration and U.S. reliance on imports.

Estes Energetics is a defense and industrial company that researches, designs, engineers, manufactures, tests, and integrates solid-propellant rocket motors, energetics, critical chemicals, and associated technologies for government and commercial customers. It combines practical propulsion solution development with advanced aerospace research and development under one team. Estes Energetics has engineering, manufacturing, and test facilities in Penrose, Colorado and Minden, Louisiana. Estes Energetics was spun off from Estes Industries, who is the world leader in model rocketry with more than 60 years of experience producing solid-propellant rocket motors.

Commenting on the LOI with Estes Energetics, Dr. Dino Gnanamgari, 5E chief commercial officer noted:

“We look forward to a broad collaboration with Estes focusing on boron advanced materials necessary for space and military applications. Estes is an industry leader in the solid-propellant and aerospace markets.

An important consideration of the collaboration is our combined mission to onshore critical materials and technologies that serve critical U.S. government needs. We intend to have a long-term partnership with Estes as we focus on continuous innovation in the boron advanced materials space.

Today’s announcement continues to deliver on our strategy to become a vertically integrated global leader in the supply of boron specialty and advanced materials.”

Commenting on the LOI with 5E, Karl Kulling, Estes chief executive officer noted:

“There is a growing awareness of supply chain risk in the US. By collaborating with 5E, we are building a supply chain that starts from a domestic mine and continues all the way through products broadly used in solid rocket motors, pyrotechnics, and other applications. Boron advanced materials complement our existing manufacturing and research efforts in critical chemicals and solid rocket motors. Boron is used in mature products and has great promise in high-performance fuels.”

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