Governor, Secretary of Commerce, local leaders
join company officials in announcing incentives package, plans for
first-of-its-kind plant in U.S.
Officials of Westwater Resources, Inc. (NYSE American:
WWR) joined Alabama Gov. Kay Ivey and other state and local
leaders at a press conference in Montgomery today to announce the
governor’s signing of incentives agreements that will bring a
first-of-its kind, advanced graphite processing plant to the state,
and put Alabama at the forefront in producing an essential material
in the batteries that power electric vehicles, electronics and
other green energy products and equipment.
The plant will be built in the Kellyton area in Coosa County,
near Alexander City, by Alabama Graphite Products, LLC, a
subsidiary of Alabama Graphite Corp. (“Alabama Graphite”) and its
parent company, Westwater Resources, Inc. (“Westwater”). Westwater
is a Colorado-based mineral resources company committed to
exploring and developing materials for clean, sustainable energy
production.
“This plant not only will make Alabama the U.S. leader in
graphite production, the go-to place for this important resource in
battery manufacturing, it also will elevate our standing even more
as a major player in the fast-growing electric vehicle sector,”
Ivey said. “We’re home to four major auto plants, and the ability
to source precious materials in state for the lithium-ion batteries
used in electric and hybrid vehicles will be a big plus in
attracting other manufacturing jobs to the state.”
Graphite is used as the anode in lithium-ion batteries, as well
as a conductivity enhancer for all types of batteries, including
the common lead-acid batteries in traditional vehicles.
Gov. Ivey was joined at today’s press conference by Westwater
President and CEO Chris Jones, Commerce Secretary Greg Canfield,
state Sen. Clyde Chambliss, Alexander City Mayor Woody Baird, and
representatives of the Coosa County Commission and the Lake Martin
Area Economic Development Alliance, as well as members of the
Alabama Graphite Products team.
“I want to thank Gov. Ivey, Secretary Canfield, other state
leaders, and the many local officials in Alexander City and Coosa
County who worked with us to make this vision come true,” Jones
said. “The people of Alabama have been very welcoming since day
one, and their cooperation has been integral in putting together
the many pieces needed for us to build this innovative plant in
Alabama. We look forward to being an active member of the business
community here for many years to come.”
Alabama Graphite plans to make an initial investment of $80
million or more (with a second phase pushing the total to $124
million) in the graphite processing plant. Construction is expected
to begin later this year, with the plant operating by the end of
2022. The plant is expected to employ at least 100 full-time,
permanent workers. Those jobs will pay an estimated average hourly
wage of $21.15.
The agreements signed by the governor will provide Alabama
Graphite Products with jobs and tax credits under the Alabama Jobs
Acts, totaling up to an estimated $29.9 million over 15 years. In
addition, Alabama Industrial Development and Training (“AIDT”) will
provide Alabama Graphite Products up to $925,000 in job-training
and employee recruitment incentives.
Local incentives to be provided by the Lake Martin Area Economic
Development Alliance, the Lake Martin Area Industrial Development
Authority, Coosa County and Alexander City are estimated to total
more than $4.7 million, and are to include abatement of 10 years of
noneducational property taxes and the use of 80 acres in the Lake
Martin Regional Industrial Park at no cost. In addition, a bridge
will be built to provide additional access to the industrial
park.
Water and wastewater treatment will be provided by Alexander
City. In support of this effort, Alabama Graphite Products has
entered into a public-private partnership to upgrade Alexander
City’s wastewater treatment system with a contribution of $400,000
and prepayment of $100,000 in treatment fees.
“This is a great project for Alabama for many reasons,” said
Commerce Secretary Canfield. “It perfectly complements our auto
industry and what these automakers are doing with EVs here in
Alabama. Mercedes and Hyundai have announced major expansion
projects specifically for the manufacturing of electric vehicles.
Plus, these are well-paying, sustainable jobs that will spur
additional economic development and even more jobs in the
area.”
Tallapoosa County Commissioner and Lake Martin Area Economic
Development Alliance Chairman T.C. Coley Jr. said projects like
this reinforce the Alliance's regional approach to economic
development.
“Attracting an operation like this means a great deal to the
region,” said Coley. “I can't praise enough the
multi-jurisdictional effort led by our staff, Executive Director
Chad Odom and Assistant Director Denise Walls. Their creativity,
knowledge and use of local, state and federal resources made this
possible. The mayor of Alexander City, the City Council, city staff
and the Coosa County Commission also are to be commended for their
efforts to overcome various infrastructure challenges and make
investments that secure the region's economic future.”
In addition to making Alabama home to one of the first
large-scale producers of refined graphite in the U.S., Alabama
Graphite plans to mine raw graphite in western Coosa County in part
of what was known as the “Alabama Graphite Belt.” Westwater
Resources acquired mineral rights to approximately 42,000
graphite-deposit-rich acres in 2018 and expects to begin mining
operations by 2028.
Westwater’s Jones noted that the U.S. government has declared
graphite critical to the nation’s economy and national
security.
“All of the graphite used and needed in the United States by the
electric vehicle industry is imported,” he said. “Most of it is
from China, where media have reported both worker and environmental
issues. Domestic production of graphite reduces our dependence on
foreign sources. Even though the raw graphite we will process into
battery-grade material will be imported initially, none of it will
be from China. We have secured agreements from other
providers.”
Alabama Graphite will use a proprietary process to purify the
raw graphite and refine it into battery grade purity. That process
is safer and more environmentally friendly and sustainable than the
hydrofluoric acid-based process commonly used in China and
elsewhere, that requires more water and produces more
environment-damaging byproducts.
“One of our core values is safety. We’re protective of our
workers, the community and the environment,” Jones said. “Whether
it’s mining or processing graphite, our company is committed to
doing it in an environmentally safe, sustainable manner. The
biggest virtue of electric vehicles and other battery-powered
products is they reduce carbon emissions and are better for the
environment. Producing the key materials for those batteries, we
believe, can and should be done in an environmentally responsible
way as well.”
Alabama Graphite’s processing plant will produce approximately
7,500 tons of battery-grade graphite a year initially, eventually
expanding to 15,000 tons. The battery in an average EV needs about
175-200 pounds of graphite. Ford’s new electric F-150 truck, the
Lightning, is expected to need roughly 450 pounds of graphite,
Jones said.
About Westwater Resources
Westwater Resources (NYSE American: WWR) is focused on
developing battery-grade graphite. The Company’s projects include
the Coosa Graphite Project — the most advanced natural flake
graphite project in the contiguous United States — and the
associated Coosa Graphite Deposit located across 41,900 acres
(~17,000 hectares) in east-central Alabama. For more information,
visit www.westwaterresources.net.
Cautionary Statement
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks, uncertainties and
assumptions and are identified by words such as "expects,"
"estimates," "projects," "anticipates," "believes," "could,"
“scheduled,” and other similar words. All statements addressing
events or developments that WWR expects or anticipates will occur
in the future, including but not limited to the cost and timing for
commencement of operations at the Company’s proposed processing
plant, the value of the incentives realized by the Company, future
production of battery graphite products, future financing
activities and financial resources, and activities involving the
Coosa Graphite Project and the Coosa Graphite Deposit. Because they
are forward-looking, they should be evaluated in light of important
risk factors and uncertainties. These risk factors and
uncertainties include, but are not limited to, (a) the Company’s
ability to successfully construct and operate a processing plant
capable of producing battery grade materials in quantities and on
schedules consistent with the Coosa Graphite Project business plan;
(b) the Company’s ability to raise additional capital in the future
including the ability to utilize existing financing facilities; (c)
spot price and long-term contract price of graphite and vanadium;
(d) risks associated with our operations and the operations of our
partners such as Dorfner Anzaplan and Samuel Engineering, including
the impact of COVID-19; (e) operating conditions at the Company’s
projects; (f) government regulation of the graphite industry and
the vanadium industry; (g) world-wide graphite and vanadium supply
and demand, including the supply and demand for energy storage
batteries; (h) unanticipated geological, processing, regulatory and
legal or other problems the Company may encounter in the
jurisdictions where the Company operates or intends to operate,
including but not limited to Alabama and Colorado; (i) any graphite
or vanadium discoveries not being in high-enough concentration to
make it economic to extract the minerals; (j) currently pending or
new litigation or arbitration; and (k) other factors which are more
fully described in the Company’s Annual Report on Form 10-K,
subsequent Quarterly Reports on Form 10-Q, and other filings with
the Securities and Exchange Commission. Should one or more of these
risks or uncertainties materialize or should any of the Company’s
underlying assumptions prove incorrect, actual results may vary
materially from those currently anticipated. In addition, undue
reliance should not be placed on the Company’s forward-looking
statements. Except as required by law, the Company disclaims any
obligation to update or publicly announce any revisions to any of
the forward-looking statements contained in this news release.
For more information about Alabama Graphite Products, go online
to www.alabamagraphiteproducts.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210622005233/en/
Westwater Resources Christopher M. Jones, President &
CEO Phone: 303.531.0480 Jeff Vigil, VP Finance & CFO Phone:
303.531.0481 Email: Info@WestwaterResources.net
Investor Relations Porter, LeVay & Rose Michael
Porter, President Phone: 212.564.4700 Email:
Westwater@plrinvest.com
Product Sales Contact: Jay Wago, Vice President – Sales
and Marketing Phone: 303.531.0472 Email:
Sales@westwaterresources.net
Public Relations Direct Communications Eddie Lard Phone:
205.746.3274 Email: eddie@dcwins.com
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