Appian Founder and CEO Michael W Scherb
Investment advisor Appian Capital Advisory has committed a $230-million financing package to US battery metals producer US Strategic Metals (USSM) for the development of USSM's cobalt/nickel mine and the construction of its hydrometallurgical battery metals recycling facility based in Fredericktown, Missouri.
The initial funding consists of a $120-million secured term loan facility, along with a $70-million secured royalty financing arrangement and warrants.
USSM will mine, process and recover battery supply chain critical minerals including cobalt, nickel, lithium and copper, through its Fredericktown facility, strategically located near US gigafactories and automotive manufacturing plant.
The processing operations will be supplied with concentrates produced at its mine (located at site) and black mass, produced from lithium-ion battery production scrap and end-of-life lithium-ion batteries.
Commissioning is scheduled to occur in late 2024.
The transaction positions USSM to become the first significant fully-integrated recycler and producer of battery metals for the electric vehicle supply chain in the US, states Appian.
“Appian is excited to partner with USSM to develop its cobalt/nickel mine and battery recycling and mineral processing operation in Missouri. USSM will shape the battery recycling landscape in the US and play a critical role in establishing a domestic supply of essential minerals for the energy transition.
"This transaction is a further example of the continued success of Appian’s dedicated credit and royalties offering and the added value that our market-leading technical team brings to project owners,” says Appian founder and CEO Michael W Scherb.
“This new round of investment will enable us to process 240 t a day of polymetallic feedstock in Phase 1, making USSM the only permitted domestic operation with significant processing capacity.
"This funding milestone positions us to provide automakers with a secure and ethical domestic supply of critical battery metals to help meet US demand – a game changer for the auto industry and the US strategic battery materials supply chain,” adds USSM CEO Stacy Hastie.