Australia's Ardea Resources said on Thursday it had received nonbinding support from Export Finance Australia (EFA) and the Export-Import Bank of the United States (Exim) for the potential financing of its Goongarrie Hub nickel/cobalt project in Western Australia.

Subsidiary joint venture vehicle, Kalgoorlie Nickel Pty Ltd, has been issued with a non-binding letter of support from EFA and a letter of interest from Exim, together representing potential funding of up to about A$1-billion equivalent.

EFA’s letter indicates possible support of up to A$500-million, subject to further due diligence and internal approvals, while Exim has signalled potential financing of up to $350-million under its Supply Chain Resiliency Initiative.

The coordinated backing reflects the project’s strategic importance in strengthening critical minerals supply chains between Australia, the US and allied nations, particularly for the battery, energy storage and electric vehicle sectors.

The Goongarrie Hub is located about 70 km north of Kalgoorlie-Boulder and hosts a large nickel/cobalt resource. Ardea has positioned the project to supply both traditional markets, such as stainless steel, and emerging clean energy industries, which require high-purity nickel products for battery cathodes.

Ardea MD and CEO Andrew Penkethman said the backing marked a "major milestone" in advancing the Goongarrie Hub towards development.

"The strong interest from these government-backed institutions reinforces the global strategic significance of the Goongarrie Hub in meeting both traditional nickel demand in stainless steel and the rapidly increasing requirements of EV and energy storage battery markets. Ardea looks forward to working closely with EFA, Exim and other ally nation Export Credit Agencies to develop Australia’s next large-scale, long life, cost-competitive nickel/cobalt operation.”

EFA MD and CEO John Hopkins said the agency’s support aligned with its mandate to promote Australia’s critical minerals sector. "This support has been the result of engagement under the Single Point of Entry (SPE) and directly supports the United States-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths. We look forward to continuing discussions as the project progresses.”

EFA said its potential funding remained subject to the project meeting eligibility requirements, including environmental, social and financial assessments, as well as credit, risk and legal approvals.

Ardea said it was continuing to engage with both agencies through the SPE process as it advanced project development and financing discussions.