5E Advanced Materials Is Buying A Borates Producer Out Of Bankruptcy

5E Advanced Materials is a believer in the future of domestic boron. Which is exactly why they’re trying to buy a borates producer out of bankruptcy.

What’s happening:

• 5E Advanced Materials (NASDAQ: FEAM) has entered into a new deal to acquire the operating assets of Searles Valley Minerals out of a Chapter 11 bankruptcy process
  

Why it matters:

• 5E Advanced Materials has publicly stated the new acquisition will position them as the only American-owned producer of borates in the United States upon it successfully closing
  

Going deeper:

• Searles Valley Minerals produces refined borates, boric acid, sodium sulfate and salt from their Westend and Argus plants located in Trona, California
  
• 5E Advanced Materials notably owns the Fort Cady boron project located in the Mojave Desert where they have been producing boric acid at a small scale facility
  

The intrigue:

• Nearly all boron supply in America comes exclusively from Rio Tinto’s (NYSE: RIO) operations near Boron, California
  

The fine print:

• 5E Advanced Materials’ acquisition of Searles Valley Minerals is subject to financing and bankruptcy court approval before it can officially close