5E Advanced Materials Inc. (NASDAQ: FEAM) announced it has signed a 10-year offtake heads of agreement with a domestic industrial customer, marking the company's first such agreement as it develops its Fort Cady boric acid project in California.

The company reported several operational milestones during its third quarter, including the development of a meta boric acid product with approximately 80% B2O3 equivalent content. 5E has filed a provisional patent application for this product, which offers higher boron content than conventional granular boric acid.

The materials company also initiated a program to develop magnet-grade ferroboron, used in specialty steel and permanent magnet applications. Initial crucible testing has begun, with the company expecting to produce initial samples in the coming weeks.

Following a customer roadshow where executives met with 12 potential customers, 5E received multiple requests for proposals and indicative terms. The company plans to pursue additional offtake agreements in the coming months.

"The need for a new, reliable and resilient supplier of boron and specialty derivatives products is immediate," said Chief Executive Officer Paul Weibel in the press release.

5E continues to advance project financing discussions for the Fort Cady Project, including potential government-supported financing opportunities. The company plans customer outreach efforts in Asia in June.

The Fort Cady resource in Southern California has been designated as Critical Infrastructure by the U.S. Department of Homeland Security, and boron appears on the U.S. Government's 2025 List of Critical Minerals.