Westwater Resources Commends President Biden’s Decision to Invoke the Defense Production Act

Rhea-AI Summary

Westwater Resources, Inc. (AMEX: WWR) praises President Biden for invoking the Defense Production Act to boost domestic production of crucial materials for electric vehicle batteries. The initiative aims to reduce U.S. dependence on imports, particularly from China, addressing rising energy prices and climate goals for 2035. Westwater is progressing with its Kellyton graphite processing plant in Alabama, which will provide battery-grade graphite. The company is also exploring the Coosa graphite deposit to supply the growing demand for battery materials.

Positive

• Support from the Defense Production Act could enhance Westwater's market position in the battery-materials sector.
• Construction of the Kellyton graphite processing plant is ongoing, aimed at producing battery-grade graphite domestically.
• Exploration activities at the Coosa graphite deposit may bolster future supply capabilities.

Negative

• The U.S. remains 100% reliant on imports for battery-grade graphite, indicating vulnerability in the supply chain.

CENTENNIAL, Colo.--(BUSINESS WIRE)-- Westwater Resources, Inc. (NYSE American: WWR), a battery-grade, natural graphite development company (“Westwater” or “the Company”), commends President Biden for signing a Presidential Determination to invoke the Defense Production Act to encourage domestic production of critical materials for large capacity batteries for electric vehicles and clean energy storage. The President’s decision is part of a broader set of initiatives to address rising energy prices and help the United States meet its climate goals by reducing greenhouse gas emissions, with a target date of 2035 for a clean domestic power grid.

On March 31, 2022, the President announced via Twitter:

“Today, I am issuing a directive to strengthen our clean energy economy. To use the Defense Production Act to secure American supply chains for the critical materials that go into batteries for electric vehicles and storage of renewable energy.”

The Defense Production Act (DPA) is the primary source of presidential authorities to expedite and expand the supply of materials and services from the U.S. industrial base needed to promote the national defense. DPA authorities include protection or restoration of critical infrastructure.

The United States is 100 percent dependent on imports for battery-grade graphite, which is currently the primary anode material in the Lithium-ion batteries powering smartphones, laptops, electric vehicles. Those batteries also store power generated from intermittent renewable energy sources. Westwater is continuing construction activities on Phase I of the Kellyton graphite processing plant near Kellyton, Alabama, which will purify natural graphite concentrates into battery-grade materials.

Westwater’s Coosa graphite deposit in Coosa County, Alabama is a significant graphite property in the continental United States, and the Company is currently conducting an exploration program on the deposit, with the expectation to develop the deposit to supply natural flake graphite for processing into battery-grade graphite for all types of batteries.

“The President’s order could open new opportunities for the Company,” said Chad Potter President and CEO of Westwater. “We are in the construction phase of our Kellyton graphite processing plant. The United States is heavily dependent on imports of graphite, especially from China. We are proud to have a domestic graphite project in Alabama and in the United States.”

“Westwater will support the government’s efforts and will work to ensure the White House remains aware of the importance of battery grade graphite, of the importance of graphite to the nation’s security, and how the Company’s Kellyton graphite processing plant and its Coosa graphite deposit fit into the Country’s critical minerals equation,” Mr. Potter concluded.

About Westwater Resources, Inc.

Westwater Resources, Inc. (NYSE American: WWR) is focused on developing battery-grade natural graphite. The Company’s primary project is the Kellyton graphite processing plant that is under construction in east-central Alabama. In addition, the Company’s Coosa graphite deposit is the most advanced natural flake graphite deposit in the contiguous United States — and located across 41,900 acres (~17,000 hectares) in Coosa County, Alabama. For more information, visit www.westwaterresources.net.

Cautionary Statement Regarding Forward-Looking Statements

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. Forward looking statements include, among other things, statements concerning the construction and operation of the Company’s Kellyton graphite processing facility, the Company’s Coosa graphite deposit, and the costs and schedules associated with them. The Company cautions that there are certain factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of the Company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Westwater’s Annual Report on Form 10-K for the year ended December 31, 2021, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: (a) the spot price and long‑term contract price of graphite (both flake graphite feedstock and purified graphite products) and vanadium, and the world-wide supply and demand of graphite and vanadium; (b) the effects, extent and timing of the entry of additional competition in the markets in which we operate; (c) the ability to obtain contracts with customers; (d) available sources and transportation of graphite feedstock; (e) the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of the Kellyton graphite processing facility; (f) the ability to construct and operate the Kellyton graphite processing plant in accordance with the requirements of permits and licenses and the requirements of tax credits and other incentives; (g) government regulation of the mining and manufacturing industries in the United States; (h) unanticipated geological, processing, regulatory and legal or other problems we may encounter; (i) the results of our exploration activities at the Coosa graphite deposit, and the possibility that future exploration results may be materially less promising than initial exploration results; (j) any graphite or vanadium discoveries at the Coosa graphite deposit not being in high enough concentration to make it economic to extract the metals; (k) our ability to finance growth plans; (l) the potential effects of the continued COVID-19 pandemic; (m) currently pending or new litigation or arbitration; and (n) our ability to maintain and timely receive mining, manufacturing, and other permits from regulatory agencies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220401005429/en/

Westwater Resources, Inc.

Terence J. Cryan, Executive Chairman of the Board

Phone : 303-531-0516

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

Source: Westwater Resources, Inc.

FAQ

How does the Defense Production Act benefit Westwater Resources (WWR)?

The Defense Production Act could enhance Westwater's market position by incentivizing domestic production of battery-grade graphite.

What is the current status of Westwater's Kellyton graphite processing plant?

Westwater is currently in the construction phase of the Kellyton graphite processing plant in Alabama.

Where is the Coosa graphite deposit located and what is its significance?

The Coosa graphite deposit, located in Coosa County, Alabama, is a significant resource for supplying natural flake graphite.

What challenges does Westwater Resources face in the graphite market?

Westwater faces challenges due to the U.S. dependency on imported battery-grade graphite and competition in the market.