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Stillwater Critical Minerals (TSXV:PGE,OTCQB:PGEZF) has signed a non-binding memorandum of understanding (MOU) with private company US Strategic Metals (USSM) to explore potential business opportunities within the critical metals sector.
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.
USSM CEO Stacy Hastie described the Stillwater Critical Minerals partnership as a key move in building towards a robust critical metal supply chain geared towards future expansion. Both companies also highlighted their partnerships with global miner Glencore (LSE:GLEN,OTC Pink:GLCNF).
“We have strong backers who are aligned with our team’s goal to expand into one of North America’s largest and most important fully integrated producers of key battery and strategic metals with a full supply chain from exploration to production all based within the United States,” Hastie added in the company’s statement on October 10.
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.
Recently, the US government has allocated significant resources to support domestic critical minerals production, primarily in favor of building up industries like clean energy, advanced defense systems and consumer electronics.
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.