Westwater Resources Navigates Construction Progress and Funding Needs

Westwater Resources continues to make significant headway on its flagship Kellyton Graphite Plant, though securing the substantial capital required for completion remains a pivotal challenge. The company is actively pursuing multiple financial strategies to bridge the gap.

US Tariffs Create Favorable Domestic Shift

Recent trade policy shifts are creating a substantial tailwind for domestic graphite producers. The imposition of new 170% tariffs on Chinese-coated spherical graphite (CSPG), a critical material for electric vehicle batteries, has dramatically altered the competitive landscape. This development provides a considerable advantage to US-based suppliers like Westwater Resources.

The scope of these tariffs extends beyond China to include imports from Indonesia, South Korea, and Japan. This effectively closes previous loopholes that allowed material to be routed through these countries. As a result, US automakers and battery producers are now actively seeking domestic sources of CSPG to avoid these prohibitive tariff costs.

Construction Advances on Schedule

The Phase I construction of the Alabama graphite facility is progressing according to plan. The company has already deployed $124 million of the project’s total $245 million budget, representing more than half of the allocated funds.

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Specific operational milestones have been achieved: 85% of the necessary equipment is already on site, the facility has been connected to the power grid, and the initial micronization mills are operational. Installation of electrical systems and power distribution components is currently underway.

$150 Million Financing Hangs in the Balance

The timely completion of Phase I is contingent upon securing a $150 million debt financing package. Multiple potential lenders are currently engaged in the due diligence process with the company.

Concurrently, Westwater Resources has submitted a formal loan application to the US Export-Import Bank following the receipt of a Letter of Interest. This application is now under official review by the agency.

Convertible Notes Bolster Financial Position

To maintain liquidity during this period, the company raised a total of $10 million through two public offerings of convertible notes to an institutional investor in June and August of 2025.

• Current Liquidity: $12.5 million (as of August 11, 2025)
• Note Terms: Maturity in mid-2027, with monthly payments payable at the company’s option in either cash or stock
• Strategic Purpose: This capital ensures the continuation of current construction progress and supports growth initiatives within the battery materials sector