New Rural EB-5 Fund With US Strategic Metals Introduced by LCR Capital

LCR Capital Partners, a global private investment and advisory services firm, is proud to announce the launch of a new $100M rural EB-5 fund to raise capital for a project by US Strategic Metals (USSM). USSM is building a battery-grade metals refinery that is committed to processing mined and recycled critical minerals to fuel the green energy revolution and advance America's economic and national security.

LCR developed this first-of-its-kind EB-5 project in direct response to Presidential Executive Orders issued by Presidents Biden and Trump. Due to the sensitive nature of the project, capital will only be sourced from friendly and allied nations.

“Today, China controls about 75% of the critical mineral processing globally. We can break this stranglehold and create a domestic supply of clean, ethically-sourced battery metals. The Federal legislation passed last year requires US sourcing of these materials for electric vehicle manufacturers that want a rebate. We can meet the demand at comparable cost and avoid the carbon footprint of shipping metals around the world,” said Stacy Hastie, CEO of US Strategic Metals.

The company has invested over $200mm to de-risk the project and is actively raising significant private capital in addition to this offering. The $100m of EB-5 capital will finance the building and expansion of a hydrometallurgical plant which will convert recycled and raw materials containing critical battery metals into a form utilizable for the electric vehicle supply chain. All of the permits for building and operation have been approved and the Hydromet Plant is under construction at the facility at the Madison Mine in Fredericktown, Missouri.

“The USSM project is addressing a national security vulnerability regarding the importance of securing a domestic supply chain for cobalt, nickel, copper and lithium. These minerals are critical to the green energy economy and USSM will be the only US domestic producer and processor of these four critical minerals when this project launches,” said Suresh Rajan, Executive Chairman of LCR.

While most EB-5 projects tend to be in hospitality or real estate, this new fund provides capital to an industry of increasing global importance and opportunity. USSM is meeting the new demand for electric vehicle (EV) batteries by building a domestic supply chain for the minerals critical to America’s future. LCR will seek expedited approval for the project, as well as expedited adjudication for each EB-5 investor.

Investment in the EB-5 project is projected to create 3,429 jobs, well over the 10 jobs per investor required for an EB-5 Immigrant Investor Visa. Since the project is in a rural census tract, it will also have the benefits of set-aside visas and prioritized processing.

“EB-5 capital has done a lot for the US economy. In 2008, when commercial lending stalled, EB-5 helped sustain the construction industry which was important in bringing back growth to the US economy. Today, the US needs investment in a couple of key areas like critical minerals. EB-5 can drive these projects forward and bring enormously talented, capable families to the US at the same time,” said Sherman Baldwin, CEO of LCR.

USSM focuses on taking a wide range of inputs and producing refined minerals for use primarily in EV batteries, but also in other batteries and industrial products such as microprocessor chips, jet engines and military equipment. The inputs include discarded materials from previous mining operations and recycled EV battery materials. USSM has partnered with InterCo, a metaltronics recycler with a new 225,000-square-foot factory near USSM in Fredericktown, Missouri, to ensure a consistent supply of recycled battery material. Additionally, the Company entered into an offtake contract with Glencore, one of the world’s largest diversified natural resources companies and key supplier of critical battery metals to numerous US-based global automotive companies.

LCR is actively working with members of US Congress and senior leaders within the Executive Branch to request expedited processing since the project is tightly aligned with national security interests. If granted, this means USCIS will process the project application (I-956F) and investor petitions (I-526E) ahead of filings for other TEA and rural projects. LCR is confident in its expedited request because the EB-5 capital invested in USSM will directly impact how quickly the plant can expand its capacity to meet the Federal requirements for the domestic production of critical minerals.