The MOU outlines a broad range of potential collaborations, some of which include marketing efforts, technical support and supply chain development for critical minerals, including nickel, cobalt and other metals essential to the production of electric vehicle (EV) batteries and renewable energy technologies.
The MOU also explores potential offtake agreements, logistics collaboration and financing opportunities.
The companies intend to work together in advocating for government support, particularly from US government agencies such as the Department of Energy and the Department of Defense.
He also added that Stillwater’s Stillwater West project, which is a potential source of at least eight critical minerals, aligns with the national mandate of the US government to bolster domestic production of the resource.
The Montana-based explorer operates in the Stillwater mining district, known for its rich deposits of nickel, platinum, palladium and other minerals. The Stillwater West project has been recognized as one of the largest undeveloped sources of critical minerals in the US.
As for USSM, the company’s plant will process recycled battery metals and feed from third parties to produce battery grade materials for the domestic supply chain. It is also developing a significant cobalt deposit.
As the global demand for EVs and renewable energy systems rises, companies and states alike are in a race to reduce reliance on imports and secure stable supplies for the energy transition.
Both companies anticipate that the partnership could position them favorably for federal government funding opportunities.
Stillwater has already received support from several federal agencies in conducting research into carbon sequestration and other green technologies.
Similarly, the MOU with USSM may further enhance the company’s eligibility for additional government grants and partnerships.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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