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Westwater Resources (NYSE:WWR) +3% post-market Tuesday after saying it plans to raise Phase 1 production of battery-grade natural graphite anode material to 12.5K metric tons/year at its Kellyton graphite processing plant in Alabama, while remaining within the Phase 1 cost estimate of $271M.
The production boost comes just three months after Westwater (WWR) raised capacity to 10K tons/year from 7.5K tons.
Westwater (WWR) said market interest in its coated spherical purified graphite is due in part to the recent Foreign Entity of Concern guidance requiring electric vehicle tax credit use of Inflation Reduction Act-compliant graphite by 2025, and by new Chinese export restrictions on graphite that have reduced security of supply.
The company is constructing the Kellyton plant with the intension of providing high-quality natural graphite anode material to battery manufacturers in the U.S. and believes its product will be 100% IRA compliant.