WWR - Westwater plans to boost production at Kellyton graphite plant

2023-03-07 09:21:51 ET

Westwater Resources ( NYSE: WWR ) +3.2% pre-market Tuesday after saying it reached agreement with an unnamed Tier 1 battery manufacturer for electric vehicles and announced increased throughput and significantly enhanced project economics for its Kellyton graphite processing plant.

Under the agreement, Westwater ( WWR ) said the parties will work together to ensure the coated spherical purified graphite expected to be produced at the Kellyton plant can be used as a high-performance anode material for the customer's batteries.

The parties could negotiate another agreement that will allow for the sale of potentially all graphite anode material from the Kellyton graphite processing plant for those batteries.

In response to increased customer demand, Westwater ( WWR ) said it plans to more than double production of coated spherical purified graphite, resulting in a significant enhancement to the estimated economics of Phase 1 of the Kellyton graphite plant compared to the original definitive feasibility study.

The company said it now expects total Phase 1 capital requirements for the Kellyton graphite plant at ~$271M.

Idaho Strategic Resources recently withdrew its proposal to buy Westwater Resources .

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