5E Advanced Materials is the newest producer in ‘The Boron Triangle’ of California, determined to bring more of this critical resource to the market.
Boron is a versatile element you most likely have not heard of before. However, it has a range of industrial applications that play a pivotal role in shaping North America’s technological and economic landscapes. From aerospace advancements to agricultural innovations, its strategic significance spans multiple critical sectors.
Boron applications
Permanent magnets are materials that can maintain a magnetic field without an external power source. This unique characteristic results from the material’s atomic structure, which aligns the magnetic moments within the material in a specific direction. This alignment creates a persistent magnetic field, allowing permanent magnets to be utilised in a wide range of applications across industries.
Aerospace and defence
In the aerospace industry, boron compounds are integral to the development of lightweight composites and high-strength materials. These materials enhance fuel efficiency and bolster the structural integrity of aircraft, crucial for both commercial and defence applications. Boron’s role extends to defence technology, where it supports the production of advanced materials essential for national security.
Nuclear power
Boron’s neutron-absorbing properties make it indispensable in the operation of nuclear reactors. Used in control rods, boron helps regulate nuclear fission reactions, ensuring safe and efficient energy generation.
Consumer electronics
The electronics industry relies on boron compounds for manufacturing semiconductors and electronic components. These materials are fundamental to the production of smartphones, computers, and other advanced devices.
Automotive innovation
Boron-containing steel is pivotal in automotive manufacturing as it contributes to the production of high-strength, lightweight components. These materials enhance vehicle safety and fuel efficiency.
Agricultural
Boron serves as a vital micronutrient in agriculture, supporting the growth and development of crops essential for food security. Its incorporation into fertilisers ensures optimal crop yields and sustains agricultural productivity across North America.
Accessing this critical resource
So, how do you get exposure to this critical element?
There is only one publicly traded option available that offers direct exposure to the upside of the boron market. 5E Advanced Materials (“5E”; NASDAQ: FEAM; ASX: 5EA) is that opportunity!
Economic deposits of boron are uncommon globally, but there is an area in California, United States, known as ‘The Boron Triangle.’
Searles Valley Minerals is a private company that produces anhydrous borax, pentahydrate borax, decahydrate borax, boric acid, sodium carbonate, sodium sulphate, sodium bicarbonate, sodium chloride, and sulphate of potash products.
Rio Tinto, on the other hand, is a well-diversified major mining conglomerate with its boron mine nearby. Although the company is a significant player in the mining industry, there is no direct investment into Rio’s declining boron operation.
Why 5E?
This leads to 5E, a company ramping up its operations at its 5E Boron Americas Complex in the central Mojave desert.
Commercial discussions with prospective customers have advanced along with the shipment of products for customer testing as the company continues to progress towards Phase 1 commercial operation of 90,000tpa. This key advancement will form the foundation for off-take and supply agreements.
There is a strong tailwind in favour of US investment into clean energy, and 5E offers the additional advantage of the more environmentally friendly in-situ mining method.
In conclusion, boron’s strategic importance in North America lies in its diverse applications across key industries. From enhancing aerospace capabilities to supporting nuclear energy, boron plays a foundational role in fostering technological advancement, economic growth, and national security. Maintaining a stable supply of boron and its derivatives is essential for sustaining these critical sectors and ensuring North America’s competitive edge in the global economy.
Please note, this article will also appear in the 19th edition of our quarterly publication.
