The House-passed Act includes crucial language that indicates congressional awareness of the importance of boron for defense applications, and support for further developing domestic supply chains for defense-critical materials
HESPERIA, Calif., Sept. 14, 2023 (GLOBE NEWSWIRE) -- 5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) ("5E" or the "Company"), a boron and lithium company with U.S. government Critical Infrastructure designation for its 5E Boron Americas (Fort Cady) Complex, applauds the U.S. House of Representatives for including language in the Fiscal Year (FY) 2024 National Defense Authorization Act (NDAA) that directly highlights the importance of boron and boron derivatives in national defense applications and acknowledges the importance of onshoring the supply chains of critical materials for defense applications.
This important boron legislative amendment to H.R. 2670 the FY24 NDAA was passed unanimously by the House Armed Services Committee on June 30, 2023. Per the amendment, the language in the NDAA directs the Department of Defense to study the importance of boron to the U.S. defense and its supply chains. The amendment, which was authored by Rep. John Garamendi (D-CA), was included as part of an en bloc package originally offered by Rep. Michael Waltz (R-FL). The amendment included supportive language that instructs the Under Secretary of Defense for Acquisition and Sustainment to conduct a review of the United States' boron supply chains and to provide a report of its findings to Congress, specifically to the House Armed Services Committee regarding the nation's current boron sources. This report is also expected to assess the vulnerabilities of boron supply chains and provide a detailed review of domestic producers and processors.
Critically, the bill has passed the House and its companion measure has passed the Senate. Currently, staff from the Armed Services Committees across both chambers of Congress are negotiating a final version to resolve differences. Importantly, the amendment will be included in a final agreement given that the boron supply chain is part of the NDAA directive report language. While timing for final passage depends on the negotiations and various other factors, passage of the bill is tentatively expected by the end of CY 2023.
"This inclusion of language supporting boron production in the NDAA for 2024 gives credence to our fundamental belief that boron is critical to our nation's defense applications, such as advanced ceramics in aerospace, boron-carbide products like body and tank armor, and fuel and rocket propulsion technologies," said J.T. Starzecki, Chief Marketing Officer of 5E Advanced Materials.
"We would like to thank Rep. John Garamendi for his recognition of the important role that boron and boron derivatives will play for our domestic defense industry, and for the clear efforts himself and other supportive members of congress are undertaking to secure our nation's supply chains and for this critical mineral. These efforts in turn are helping to align the U.S. government and written legislation with domestic enterprise, leveraging significant levels of private investment. We are thankful to our representatives in Washington, as their efforts represent a strong step in the right direction towards the establishment of critical infrastructure and production capacity. As a local U.S. source and provider of boron solutions, moving forward we will continue to execute the Company's strategy and vision to become one of the leading global producers of boron and boron-advanced derivatives, with the encouragement that our domestic production will soon go to support those aforementioned U.S. national defense applications and help mitigate the current supply shortfall."
Amendment Background
The amendment directs the Department of Defense to study the importance of boron to U.S. defense applications and its supply chains.
The amendment instructs the Under Secretary of Defense for Acquisition and Sustainment to conduct a review of the United States' boron supply chains and provide a report of the findings to Congress regarding the nation's current boron sources, the vulnerabilities of its supply chains, and provide a review of domestic producers and processors.
The House Armed Services Committee unanimously approved an amendment adding the boron legislation to the FY24 NDAA on June 30, 2023.