Westwater Resources, Inc. (Westwater), an energy technology company, focuses on developing battery-grade natural graphite materials.
Alabama Graphite Company, Inc. (Alabama Graphite) holds mineral rights to explore and potentially mine the Coosa Graphite Deposit. During 2023, Alabama Graphite Products, LLC (AGP), a wholly owned subsidiary of the company, continued construction activities related to Phase I of the Kellyton Graphite Plant. In December 2023, Alabama Graphite completed the initial...
Westwater Resources, Inc. (Westwater), an energy technology company, focuses on developing battery-grade natural graphite materials.
Alabama Graphite Company, Inc. (Alabama Graphite) holds mineral rights to explore and potentially mine the Coosa Graphite Deposit. During 2023, Alabama Graphite Products, LLC (AGP), a wholly owned subsidiary of the company, continued construction activities related to Phase I of the Kellyton Graphite Plant. In December 2023, Alabama Graphite completed the initial assessment, with economic analysis (IA), for the company’s Coosa Graphite Deposit. The Coosa Graphite Deposit is located near Rockford Alabama.
Properties
Kellyton Graphite Plant
The Kellyton Graphite Plant is located near Kellyton, Alabama and five miles northwest of Alexander City, Alabama. AGP executed a land lease with the Lake Martin Area Industrial Development Authority, providing AGP rights to approximately 70 acres to construct and operate the Kellyton Graphite Plant. Westwater plans to develop the Kellyton Graphite Plant in two phases (Phases I and II). Construction activities for Phase I of the Kellyton Graphite Plant began in the fourth quarter of 2021 and are expected to continue in 2024.
A plan and design for Phase II is in place at a pre-feasibility level (‘PFS’). The future estimated costs to develop and anticipated production for each phase of the Kellyton Graphite Plant development is based on Westwater’s completed DFS, as optimized for Phase I, and the PFS for Phase II, also as optimized. The estimated economics for both Phase I and Phase II, assume that graphite concentrate will be purchased from a third-party rather than assuming any potential production from the Coosa Graphite Deposit.
Construction activities in 2023 consisted of receipt of additional long-lead equipment components, completing the construction of five of six primary plant buildings, and installation of overhead cranes, internal steel, and certain milling and shaping equipment. Westwater has constructed and is operating its research and development laboratory (‘R&D Lab’). The R&D Lab allows Westwater to continue product development and optimization with potential customers, and to perform additional quality control tests. It also affords greater flexibility to optimize future samples in accordance with customer specifications.
Production Pilot Operations
The company completed its pilot program in 2021 and produced approximately 13 metric tonnes of battery-grade graphite products. During the pilot scale program, graphite concentrates were purified and converted into advanced battery-grade graphite products. The majority of the pilot program was performed at contracted laboratories. The purified material was manufactured into three products, purified micronized graphite, coated spherical purified graphite, and delaminated expanded graphite. The results of the pilot program were used to inform the results of the company’s DFS, and to provide samples to potential customers. The company continued to operate its pilot program to produce additional product samples for potential customers as needed during 2023. As a result of the new R&D Lab at the Kellyton Graphite Plant, the company is now performing certain parts of its production process on-site.
Project Development Plan
Phase I: After testing and commissioning is completed, the Kellyton Graphite Plant is expected to have production capacity of approximately 12,500 mt of ULTRA-CSPG and 14,000 mt of SPG fines. Graphite concentrate feedstock is anticipated to be supplied from outside sources until at least 2028.
Phase II: Upon completion of Phase II, the company expects to have annual production capacity of approximately 50,000 mt of ULTRA-CSPG and 56,000 mt of SG Fines.
Coosa Graphite Deposit
Through its acquisition of Alabama Graphite, the company gained lease rights to a graphite exploration project at the Coosa Graphite Deposit. The deposit is situated in east-central Alabama, approximately 50 miles southeast of the city of Birmingham and approximately 30 miles west of Kellyton, Alabama. The Coosa Graphite Deposit is located near Rockford Alabama and is in the exploration stage.
The Coosa Graphite Deposit is situated in east-central Alabama, near the western end of Coosa County. The Coosa Graphite Deposit is located near the southwestern-most extent of the Alabama Graphite Belt.
The Coosa Graphite Deposit includes a lease of privately-owned mineral rights from a single landowner covering an overall area of approximately 41,965 acres (approximately 65.6 square miles). The various property parcels that comprise the lease are contiguous with each other, except for a few small and isolated parcels that are situated in the far south part of the project area. The lease has a series of five-year terms (commencing August 1, 2012) that are not to exceed 70 years in total.
The company holds an exploration license from the state of Alabama for the Coosa Graphite Deposit, and is reviewing local, state, and federal permits for future development.
Graphite Business
Kellyton Graphite Plant
The Kellyton Graphite Plant has been under construction for over two years. Under a lease with the Lake Martin Area Industrial Development Authority, AGP holds rights to approximately 70 acres to construct and operate the Kellyton Graphite Plant. The lease has a term of 10 years, a nominal lease payment, and transfer of title to the land to AGP at the end of the lease term. Further, the lease provides AGP the option to purchase the land for a nominal amount during the term of the lease.
Westwater purchases graphite flake concentrate for the Kellyton Graphite Plant under a supply contract with Syrah Resources Limited.
Strategy
The company's strategy is to increase shareholder value by advancing its battery-grade graphite business. The acquisition of Alabama Graphite in 2018 provides the company with the opportunity to provide battery-grade graphite products to the growing market for electric vehicles, trucks and buses, and consumer electronics, as well as grid-based storage devices.
Customer Engagement
On February 4, 2024, the company entered into a Products Procurement Agreement (‘Procurement Agreement’) with SK On Co., Ltd. (‘SK On’). Pursuant to the terms of the Procurement Agreement, Westwater will supply Coated Spherical Purified Graphite (CSPG) natural graphite anode products from its Kellyton Graphite Plant to SK On battery plants located within the U.S.
Regulation
Kellyton Graphite Plant
On January 31, 2022, the company announced that it had received its National Pollutant Discharge Elimination System (NPDES) construction stormwater permit, which was required to commence site grading for the Kellyton Graphite Plant. The NPDES permit has been issued by the state of Alabama under NPDES to ensure the company's construction efforts comply with the Federal Clean Water Act as it relates to regulated disturbances and any stormwater runoff from the Kellyton Graphite Plant site.
In June 2022 and August 2022, the company received its air permit and its State Indirect Discharge (SID) permit for the treatment of wastewater from the Alabama Department of Environmental Management, respectively. Consequently, the company has all necessary permits to complete the construction of Phase I of the Kellyton Graphite Plant.
Coosa Graphite Deposit
Specifically, to mine the Coosa Graphite Deposit, permits may be required in accordance with the Alabama Surface Mining Act of 1969, which is administered by the Alabama Department of Labor (‘DoL’). DoL issues mining permits, ensures that mine sites are properly bonded for reclamation purposes, and makes periodic inspections.
History
The company was founded in 1977. It was incorporated in 1977. The company was formerly known as Uranium Resources, Inc. and changed its name to Westwater Resources, Inc. in 2017.
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