On Nov. 5, the U.S. Department of War announced conditional financing of up to $250 million for 6K Inc.'s Tennessee cathode-material project, which the company says would support more than 200 jobs.
The financing is intended to expand domestic production of nickel-manganese-cobalt (NMC) cathode active material at 6K's facility in Jackson. The Office of Strategic Capital (OSC), a Department of War office, named defense platforms, uncrewed aerial systems, tactical communications and critical energy infrastructure as intended uses for the planned output.
OSC said it expects the proposed loan to catalyze an additional $250 million in private capital. The announcement identified no prospective investors and did not say that the additional funding had been committed.
OSC described 6K's UniMelt microwave-plasma process as a single-step production method that bypasses precursor processing and said it could cut production cycle times by up to 10-fold. Under Secretary of War for Research and Engineering Emil Michael said, “We cannot dominate the modern battlefield if we rely on foreign supply chains.”
6K said the commitment remains contingent on government authorization, available appropriations, satisfactory Department of War due diligence and further financial, legal, technical and regulatory conditions. 6K said it will receive no loan funds before those conditions are satisfied.
The announcements set no date for financial close or production start and gave no interest rate, repayment schedule or allocation of financial risk. Financial close, after 6K meets the conditions, is the next stated milestone.
The Tennessee Department of Economic and Community Development said in April 2023 that 6K Energy planned to invest $166 million in construction and equipment, with later phases potentially lifting the investment to $250 million. The state projected 230 jobs. 6K's current estimate is more than 200 jobs; the announcements do not specify whether the figures cover the same project phase or use the same measure.
