Yep additional borrowing beyond the $115m currently committed is...

Yep additional borrowing beyond the $115m currently committed is definitely an option and it could potentially be another similar deal to GM and Stellantis. The GM deal was 32,500t/yr with a US$85m loan attached. The Stellantis deal was up to 10,000t/yr with a US$30m loan attached. As a 65,000t/yr facility E25 could do a further off-take up to 22,500t/yr. If the mid-point of these loans to ton ratios of 2,615-3,000 were to apply 2,800 * 22,500 = US$63m. If E25 is working on this as a deal, its announcement would close the funding gap.

The AR notes:


Jett Capital advise on the sort of financing activities you would expect to be under consideration. The biggest funding component of the HPMSM plant is clearly the US Government Grant (Grant, not loan). The T&C's of this loan need to be finalised to know whether it rules out particular options. It the Grant allows a minority stake sell-down E25. The HPMSM project has different reasons to progress. The US Government wants it for mineral supply security. They have finally woken up and realised that being completely dependent on the Chinese for the onshore production of NMC style batteries is not a position they want to be in. If LFP migrates to LMFP then they are completely dependent on the Chinese for both primary battery options used for EV's.

GM and Stellantis clearly want the project to proceed because they need a USA source of supply.

Investors will only want to fund the project if it is expected to deliver strong returns. If it is expected to deliver strong returns then its worth more than the capital cost of construction. If its ultimately worth more than US$300m then a 20% stake in it could be sold for >$60m. This will be one of the funding options on the table.