Latest Agreement with U.S. Cellulose Insulation Company Further Builds on Commercial Momentum and Supports Fort Cady's Path to Bankability
HESPERIA, CA / ACCESS Newswire / July 7, 2026 / 5E Advanced Materials, Inc. ("5E" or the "Company") (NASDAQ:FEAM), a company focused on becoming a vertically integrated global leader and supplier of refined borates and advanced boron derivative materials, today announced it has signed an offtake heads of agreement ("HOA") with a domestic cellulose insulation company for the purchase of boric acid and calcium sulphate products from the Company's Fort Cady Integrated Boron Facility in Southern California. Boric acid is a required fire-retardant additive in virtually all cellulose insulation, and the agreement signals a domestic manufacturer is moving to lock in a U.S.-based supply source ahead of Fort Cady's full-scale production.
This is the third commercial offtake milestone 5E Advanced Materials has announced in approximately 60 days, following an offtake HOA signed in May 2026 with a domestic industrial manufacturer and a non-binding indication of interest signed with a second domestic industrial end-user. Combined, the agreements and indications of interest signed to date span multiple market segments and end-use markets, supporting Fort Cady's project financing discussions.
"Announcing our third commercial milestone in as many months reflects the momentum we are building as we execute our commercialization strategy for Fort Cady," said Paul Weibel, Chief Executive Officer. "The continued signing of offtake agreements and indications of interest across multiple domestic end markets, including established industrial users and emerging growth companies, demonstrates both the quality of our boric acid product and the urgent demand for a reliable domestic supply chain. Boric acid is a critical input for maintaining fire efficacy in cellulose insulation, and this HOA further strengthens Fort Cady's commercial readiness and the role we can play in enabling new domestic manufacturing capacity."
Commercial pipeline to date:
Date |
Counterparty Type |
Term |
Annual Volume |
May 13, 2026 |
Domestic industrial |
HOA 5-year + 5-year renewal (10-year term) |
7,500 - 10,000 short tons |
July 1, 2026 |
Domestic industrial |
Non-binding IOI (5-year term) |
3,750 - 4,500 short tons |
July 7, 2026 |
Domestic cellulose |
HOA 5-year + 5-year renewal (10-year term) |
5,000 - 8,000 short tons |
Recent Business Highlights include:
Signed heads of agreement with a domestic cellulose insulation company - The HOA contemplates a 5-year initial term with a 5-year automatic renewal, an annual minimum offtake of 5,000 short tons and a maximum of 8,000 short tons, at a fixed price subject to annual escalation. The arrangement is subject to the negotiation and execution of a definitive product purchase agreement and includes a take-or-pay obligation on the minimum contracted volume.
Third commercial agreement in approximately 60 days - This HOA follows 5E's first offtake HOA signed in May 2026 with a domestic industrial manufacturer and a non-binding indication of interest signed with a second domestic industrial end-user, collectively demonstrating broad and growing demand across the cellulose insulation and industrial end-use markets.
Expanding domestic customer base across multiple end markets - 5E's commercial pipeline continues to grow across diverse end-use applications for boric acid. Management believes this diversification across customers and end markets strengthens the overall commercial case supporting Fort Cady's project financing needs.