Westwater Resources Inc (NYSE-A:WWR) highlighted the achievement of several critical milestones for its natural graphite business during the second quarter while handing down its financial results for the period.
Notably, the company has announced a binding off-take agreement to supply natural graphite anode material with Fiat Chrysler Automobiles, part of Stellantis.
Westwater has secured off-take agreements for 100% of the planned Phase 1 battery anode production at its Kellyton graphite plant in Alabama.
Phase 1 construction at Kelltyon continues, with the company investing about $120 million in the project since its inception.
During Q2, the company commenced the installation of the qualification line at the Kellyton plant which will be used to prepare larger bulk samples of coated spheronized purified graphite (CSPG) for customer qualification.
“Westwater is the only US-based natural graphite company that has a processing facility under construction, that has multi-year off-take agreements for CSPG, and that has a graphite deposit in the same state as its future processing plant,” Westwater CEO Frank Bakker commented.
“The accomplishments of the Westwater team positions us well for success.”
Terence J. Cryan, Westwater executive chairman, added: “We are particularly proud of the strong performance from our team at Westwater which this year has also achieved a 25% increase in anticipated Phase 1 production volumes while staying on budget which improved already attractive project economics.”
As of June 30, 2024, the company had a cash balance of $3.2 million.
The company said it is continuing in its efforts to secure debt financing to fund the approximately $150 million balance of the $271 million estimated capital costs required to complete Phase 1 construction at the Kellyton plant.
It is currently negotiating with lenders a binding term sheet for that debt financing, which is supported by the two announced offtake agreements.
“Following the second off-take agreement, we are making significant progress with lenders on a debt financing,” Westwater CFO Steve Cates said.
“As the domestic EV battery anode market develops within the US, having our two off-take agreements in place is a critical step in the process for securing debt financing. Westwater remains focused on securing the project debt financing to complete construction of Phase 1 at the Kellyton Graphite Plant.”