Westwater Resources Inc (NYSE-A:WWR) has announced the signing of a letter of intent (LOI) with Dainen Material Co. Ltd for the supply and purchase of coated spherical purified graphite (CSPG), marking a significant step toward the commercialization of materials produced at Westwater's Kellyton plant.
Under the agreement, Westwater will supply CSPG to Dainen, which offers high-performance, natural graphite anode materials, for leading Japanese manufacturers of automotive lithium-ion batteries. The LOI is subject to customary conditions and specifications that will be included in a future definitive agreement.
In a statement, Terence J. Cryan, Westwater's executive chairman, expressed his optimism about the collaboration, commenting: "The LOI with Dainen is another positive step toward commercialization of materials that will be produced at our Kellyton plant.
"The passage of the Inflation Reduction Act, and its economic incentives to source critical materials like graphite domestically, is driving strong interest in our business from leading companies throughout the battery industry. Dainen brings a wealth of experience as a leading anode supplier to the Japanese hybrid and battery electric market, and we are honored to work with them to expand our business."
Hajime Okui, Dainen corporate officer and technical supervisor, highlighted the company's pursuit of strategic partnerships to secure high-quality battery materials.
"We are encouraged by initial testing of Westwater's CSPG and look forward to supporting the qualification of their materials with Japanese automakers," said Okui.
Dainen Material, a subsidiary of Dainen Corporation, has been actively involved in carbon-related operations for over 80 years, including the development, manufacturing, and recycling of anode materials for lithium-ion batteries. The company prides itself on its deep understanding, extensive experience, and stringent quality standards that meet the requirements of the Japanese market.
Westwater Resources, an energy technology company, focuses on the development of battery-grade natural graphite. Its Kellyton Advanced Graphite Processing Plant in Alabama is the primary project, while the Coosa Graphite Deposit, located across 41,965 acres in Coosa County, Alabama, is the most advanced natural flake graphite deposit in the contiguous United States.
The partnership between Westwater and Dainen Material signals a promising collaboration in the battery materials industry, combining expertise and resources to meet the increasing demand for high-quality materials in the growing lithium-ion battery market.
Contact the author at jon.hopkins@proactiveinvestors.com