(Reuters) -5E Advanced Materials is in talks with Los Alamos National Laboratory to secure about $20 million in federal support for its Fort Cady boron project in California, CEO Paul Weibel told Reuters, as it looks to become one of the few domestic suppliers of the newly designated critical mineral.

Weibel said the New Mexico-based laboratory has made an offer to fund the company's pilot operations. Los Alamos did not immediately respond to a Reuters request for comment.

The lab operates under the U.S. Department of Energy and conducts research in areas such as national security, space exploration, nuclear fusion, renewable energy, medicine, nanotech and supercomputing.

Boron was added this month to the U.S. critical minerals list by the U.S. Geological Survey and the Interior Department, reflecting concerns over supply risks, limited substitutes and heavy concentration of production outside the U.S.

Although the U.S. has significant amounts of supply, it lacks the high-value processing and boron refinement that industries rely on, which primarily occurs overseas.

China controls nearly all downstream boron processing, a strategic chokepoint that U.S. policymakers have flagged.

Global supply remains heavily concentrated. Turkey's state-owned Eti Maden is the dominant producer, followed by Rio Tinto's U.S. Borax subsidiary in Boron, California.

Weibel said 5E plans to apply for financing under a DOE program designed to accelerate U.S. production of minerals needed for energy technology, manufacturing, transportation and national defense.

The Trump administration has made increasing domestic minerals output a priority amid heightened trade tensions with China and other major suppliers.

Boron is used in nuclear energy, wind turbines, specialty glass, ceramics, advanced insulation, fertilizers, cleaning chemicals and as an additive in oil and gas drilling, making it a key input for energy transition sectors and traditional industries.

FINANCING PATH FORWARD

To support its development plans, 5E has applied for an additional $10 million loan from the U.S. Export-Import Bank (EXIM), which is under review. 

The company had received a letter of interest from EXIM for up to $285 million in potential financing for Fort Cady, one of the only advanced-stage boron projects under development in the U.S.

Both the DOE and EXIM did not respond to Reuters request for comments.

5E's Fort Cady project hosts a fully operational pilot plant that has begun shipping boric acid for commercial testing. A larger commercial-scale facility is moving through development with a final investment decision likely in October 2026.

(Reporting by Pooja Menon in Bengaluru; Editing by Arun Koyyur)

By Pooja Menon