5E Advanced Materials (NASDAQ:FEAM) CEO Paul Weibel said boron’s expanding role across industrial and specialty end markets, combined with tightening supply dynamics and growing U.S. strategic concerns, is reshaping the market outlook for the mineral and elevating the importance of domestic production. Weibel spoke with Water Tower Research Managing Director Dmitry Silverstein during the Water Tower Research Insights conference.
Demand growth spans industrial staples and faster-growing specialty uses
Weibel framed boron as supporting “300+ applications,” ranging from everyday industrial uses to higher-end specialty markets. He said baseline demand growth across major traditional applications is generally “more in line with inflationary” rates, while specialty applications can grow materially faster, which he tied to an overall annual growth rate of about 5.5%.
On specialty markets, Weibel pointed to permanent magnets, nuclear, semiconductors, and defense-related applications. He noted that common permanent magnet chemistries include neodymium, iron, and boron, and said magnets are growing at “mid-teens CAGRs.” Weibel also said enriched boron-10 is used for nuclear shielding, with small modular reactors increasing interest in nuclear power. He described boron nitride as an input in semiconductor manufacturing and mentioned boron carbide as a defense-oriented material.
Supply concentration and recent domestic changes
Weibel described the global borates market as an oligopoly, saying two producers “basically dominate 85% of global supply”: the Turkish government and a Rio Tinto subsidiary. Smaller producers exist, he said, but are often regionally “captive” with limited participation in broader spot markets.
In the U.S., Weibel said domestic production capacity has effectively narrowed to a single major asset, characterizing it as a “single point of failure.” He added that Rio Tinto’s boron business is “for sale right now,” and said he expects an announcement on a transaction “sometime in kind of late May or June” based on Rio’s public statements, with a potential closing timeframe “at the end of the year.”
Weibel also discussed a recent development involving a smaller producer that he said exited the soda ash market and, in turn, “also the boric acid market,” removing roughly “55,000 tons a year” of supply. He called the move “very unexpected” and said it has pushed the domestic market into deficit sooner than previously anticipated.
According to Weibel, the company had earlier expected 2025 to be a “year of parity” and anticipated a small deficit in 2026 as demand growth caught up. The additional reduction in supply, he said, has changed that trajectory, and he expects market ripples to potentially influence contract negotiations later in the year. He also referenced recent pricing actions, saying the two major suppliers increased prices “about 10%” for 2026.
Fort Cady project details: geology, permits, and infrastructure
Weibel outlined 5E Advanced Materials’ Fort Cady project in California, located roughly halfway between Los Angeles and Las Vegas and about two miles from Interstate 40. He highlighted boron’s addition to the U.S. Geological Survey critical minerals list in November as a “major catalyst and differentiator” for the project.
He said the company has obtained key mining permits, including:
- A Record of Decision with the Bureau of Land Management (BLM)
- A Conditional Use Permit and approved reclamation plan with the State of California
- An Underground Injection Control permit with the U.S. Environmental Protection Agency
On resource scale, Weibel said the company’s Phase I plan contemplates producing “130,000 tons of boric acid,” and he characterized the broader resource as large enough to support a “multi-generational” operation. He said the company’s initial reserve statement reflects a mine life of “39.5 years” under SEC rules and that additional wells could extend reserves because the current mine plan contemplates 27 wells.
Weibel emphasized infrastructure advantages, citing existing “a megawatt of shore power,” proximity to Kinder Morgan’s Mojave Natural Gas Pipeline, and optionality to tie into the grid. He also said the project has access to water outside the deposit in a closed basin and that the water has high total dissolved solids but can be used in the company’s process. He described proximity to the Ports of Los Angeles and Long Beach as supportive for serving Asian markets.
Pilot operations and “de-risking” the in-situ leaching approach
Weibel said the company’s mining method—an in-situ leaching approach—differs from conventional open-pit boron mining. He said 5E is permitted to mine using “5% hydrochloric acid,” with permits also allowing sulfuric or carbonic acid, though he said sulfuric acid would be problematic underground in a calcium-based deposit due to gypsum formation.
He said the company has accumulated “two years of operating data,” including “millions of gallons of solution” and “hundreds of sample points,” and operates an on-site lab to track solution chemistry. Weibel highlighted the importance of “head grade” (boron concentration in recovered solution), saying the company has “consistently been between 6% and 6.5%,” and described how higher concentrations could reduce the size—and therefore cost—of aboveground processing equipment.
He also described tracking impurity ratios (including magnesium, aluminum, and iron) and said those inputs affect operating costs and reagent consumption. In addition, Weibel said the company has conducted equipment manufacturer testing by sending solution or intermediate product to original equipment manufacturers to validate process steps, which he said helps “lock down the flow sheet” and reduce scope changes during engineering.
Economics, sensitivities, and milestones
Asked about the company’s PFS economics, Weibel said the “three biggest drivers” of model sensitivity are commodity pricing, production tonnage, and capital expenditures. He noted that improved head grade could provide upside by allowing more output from the same processing equipment.
Weibel referenced Phase I PFS figures discussed during the session, including an estimated net present value of “$725 million” and an internal rate of return of about “19%.” He said the company is focused on executing a “very realistic phase I,” while noting additional optionality not included in the base case economics, including a lithium stream the company is evaluating through a FEL1 effort and potential production of metaboric acid.
Looking to the next 12–18 months, Weibel highlighted a sequence of milestones toward a final investment decision: commercial offtake agreements, debt financing, and completion of engineering work. He said the company has term sheets out “this week” for offtake proposals and described customer engagement following the domestic supply change.
He also said the company has applied for a “$10 million EXIM loan” intended to fund FEED engineering and expects a decision timeline of “the next 60 days” to put a facility in place that can be drawn upon for engineering costs. Weibel added that prior government shutdown-related delays affected application progress but said the company now has biweekly touchpoints with EXIM.
About 5E Advanced Materials (NASDAQ:FEAM)
5E Advanced Materials, Inc develops and manufactures high-performance anode materials for lithium-ion batteries, specializing in silicon-carbon composite solutions. The company’s proprietary processes yield anode materials that deliver enhanced energy density, extended cycle life and faster charge rates compared to conventional graphite anodes. These advanced materials are targeted at electric vehicle manufacturers, consumer electronics producers and grid-scale energy storage providers seeking to improve battery performance and sustainability.
The firm operates a pilot production facility in Harrodsburg, Kentucky, where it carries out research, development and small-scale manufacturing to validate its processes and assess commercial viability.
