Westwater Resources (WWR) 2024 Annual Gateway Conference summary

Strategic positioning and market drivers

• Transitioned from uranium mining to a vertically integrated battery-grade graphite business, acquiring Alabama Graphite and focusing on U.S.-based production.

• Controls the Coosa Graphite Deposit, the largest in the Lower 48, with plans to bring it online in late 2028; Kellyton plant to begin operations in early 2026.

• U.S. demand for graphite is driven by over 15 battery gigafactories under development, with no current domestic anode material production.

• Graphite is critical for lithium-ion batteries, representing 50% of battery weight, and is designated a critical mineral by the U.S. government.

• Vertically integrated model enables control from mining to high-purity anode production, with proprietary, environmentally friendly processes.

Project milestones and financial developments

• Kellyton plant construction is over two years in, with all main buildings up and equipment installation underway.

• Secured offtake agreements with Stellantis and SK On, fully committing phase I capacity through 2031.

• Announced a $150 million debt facility term sheet to complete Kellyton’s $271 million phase I, with $120 million equity already invested.

• Increased Kellyton’s initial nameplate capacity by 25% to 12,500 metric tons per year without raising project costs.

• Phase II expansion to 50,000 metric tons per year is planned, with a definitive feasibility study expected later this year.

Industry trends and regulatory impacts

• U.S. faces a significant supply shortfall for natural graphite, even if all planned domestic capacity comes online.

• Energy storage and renewable integration are expected to further boost graphite demand.

• IRA legislation provides a 10% production tax credit for graphite anodes; China’s export restrictions and U.S. Foreign Entity of Concern rules increase the need for domestic supply.

• From 2027, 80% domestic content is required for EV tax credits, making U.S. graphite sourcing essential.

• Any graphite processed in China disqualifies EVs from the $7,500 tax credit, further incentivizing U.S. production.