The US Export-Import Bank (EXIM) has issued a letter of intent to provide $60M in financing with a 20-year maturity to Velta Holding U.S. Inc., the parent company of Ukrainian titanium producer Velta. The funds will be used to build a modern 1,000-ton titanium powder and alloy plant in the US. This complex meets the CTEP banking program’s criteria, which aims to strengthen the US role in key industries, including titanium production, and counter China’s global influence.
The construction of the plant requires approximately $100M in investment. Of the total amount needed for construction, Velta had planned to raise $30M from partners and invest another $10M from its funds. However, the company has been unable to secure these investments due to power shortages and rising cost of electricity. So, negotiations are underway with American partners to raise $10M.
According to an optimistic scenario, construction should begin in early 2025 and be completed in 2026.