Westwater Resources Supports ITC Preliminary Determination on Chinese Graphite

Rhea-AI Summary

Westwater Resources (NYSE American: WWR) supports the U.S. International Trade Commission's (ITC) preliminary determination regarding Chinese graphite exports materially impeding the U.S. domestic graphite industry. This follows the American Active Anode Materials Producers' (AAAMP) December 2024 trade case seeking tariffs up to 920% on Chinese natural and synthetic graphite imports for lithium-ion batteries.

The ITC's January 31, 2025 preliminary determination aligns with AAAMP's claim, based on the U.S. Department of Commerce's calculation of graphite dumping margins up to 915%. The case will proceed for further review, with updates expected from the Department of Commerce and ITC in March, and a preliminary determination on fair value pricing scheduled for May 27th.

Positive

• ITC's preliminary determination supports high tariffs on Chinese graphite imports
• Potential tariffs up to 920% could benefit domestic producers like WWR
• Company expects immediate positive effect on off-take interest

Negative

• None.

Insights

Trade Policy Analyst

The ITC's preliminary determination marks a pivotal moment for the U.S. graphite industry, with far-reaching implications for the domestic battery supply chain. The investigation's findings of dumping margins up to 915% validate long-standing concerns about market distortion by Chinese producers and could reshape the competitive landscape for companies like Westwater Resources.

This development carries three critical implications: First, it signals strong governmental support for establishing a robust domestic graphite supply chain, aligning with broader strategic initiatives to secure critical minerals. Second, the potential implementation of substantial tariffs would effectively level the playing field for U.S. producers, potentially accelerating their path to market viability. Third, the timing coincides with growing demand from EV manufacturers seeking to comply with Inflation Reduction Act requirements for domestic content.

The preliminary determination's rapid timeline - with additional updates expected in March and a final determination on May 27th - suggests an unusually expedited process, reflecting the strategic importance of this matter. For Westwater specifically, this could translate into enhanced negotiating leverage for off-take agreements, as domestic battery manufacturers may need to secure alternative supply sources quickly.

However, it's important to note that while this determination is positive for domestic producers, implementation challenges remain. The industry must still demonstrate capability to scale production efficiently and meet quality specifications required by battery manufacturers. The final tariff structure and its implementation timeline will be critical factors in determining the long-term impact on market dynamics.

CENTENNIAL, Colo.--(BUSINESS WIRE)-- Westwater Resources, Inc. (NYSE American: WWR), an energy technology and battery-grade natural graphite company (“Westwater” or the “Company”), supports the preliminary determination of the U.S. International Trade Commission (“ITC”) that China’s exports of graphite have materially impeded the establishment of a U.S. domestic graphite industry.

The American Active Anode Materials Producers (“AAAMP”) filed a trade case with the U.S. government in December 2024 seeking tariffs as high as 920% on imports of natural and synthetic graphite from China for use in producing lithium-ion batteries. The ITC issued a preliminary determination on January 31, 2025, which is in agreement with the AAAMP claim based on the U.S. Department of Commerce’s own calculation of graphite dumping margins up to 915%.

Jon Jacobs, Westwater’s Chief Commercial Officer, commented, “This quantitative validation and rapid acknowledgement by the U.S. government that China-subsidized graphite is impeding the establishment of a U.S. industry is a huge win for U.S. producers of natural graphite anode material like Westwater. We expect this announcement to have an immediately positive effect on our off-take interest.”

With this preliminary determination by the ITC, the case will now proceed for further review. An additional update is expected from the Department of Commerce and ITC in March, followed by a preliminary determination to be announced on May 27^th as to whether graphite is being sold at less than fair value.

About Westwater Resources, Inc.

Westwater Resources is an energy technology company that is focused on developing battery-grade natural graphite. Westwater Resources’ primary project is the Kellyton Graphite Processing Plant that is under construction in east-central Alabama. In addition, Westwater Resource’s Coosa Graphite Deposit is the largest and most advanced natural flake graphite deposit in the contiguous United States — and is located across 41,965 acres (~17,000 hectares) in Coosa County, Alabama. For more information, visit 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 “expect,” “further review,” “immediate,” “preliminary,” “positive effect,” and other similar words or phrases. Forward looking statements include, among other things, statements concerning: the importance of critical minerals including battery-grade graphite; establishing a graphite industry in the U.S., tariffs associated with the importation of natural and synthetic graphite into the U.S., the Company’s business plans for its Kellyton Graphite Plant; and efforts to manage existing off-take agreements or to put new off-take agreements into place for the products from that Plant. The Company cautions that there are 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. Those uncertainties and other factors are discussed in Westwater’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent securities filings, and they could cause actual results to differ materially from management expectations.

Contacts
Westwater Resources, Inc.
Email: Info@WestwaterResources.net

Investor Relations
Email: Investorrelations@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 “guidance,” “positively effects,” “supports,” “applaud,” “accelerate,” and other similar words. Forward-looking statements in this release include, among other things, statements concerning: Westwater’s future sales of domestically produced natural graphite, including CSPG and Fines products, to customers, including the amounts, timing, and types of products included within those sales; the continued construction and planned annual production from Phase I of Kellyton Graphite Plan; and future demand of domestic graphite products. Westwater 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 Westwater; accordingly, there can be no assurance that such suggested results will be realized. Additional risks facing Westwater‘s future prospects are discussed in the Westwater Resources, Inc. Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent securities filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206059722/en/

Westwater Resources, Inc.

Email: Info@WestwaterResources.net

Investor Relations

Email: Investorrelations@westwaterresources.net

Source: Westwater Resources, Inc.

FAQ

What tariffs are proposed on Chinese graphite imports according to WWR's announcement?

The trade case filed by AAAMP seeks tariffs as high as 920% on imports of natural and synthetic graphite from China used in lithium-ion batteries.

When will the final determination on Chinese graphite dumping be announced for WWR?

A preliminary determination regarding whether graphite is being sold at less than fair value is expected on May 27th, with an additional update from the Department of Commerce and ITC in March.

What are the current dumping margins for Chinese graphite according to WWR's release?

According to the U.S. Department of Commerce's calculations, the graphite dumping margins from China are up to 915%.

How will the ITC's preliminary determination affect WWR's business?

According to WWR's Chief Commercial Officer, the determination is expected to have an immediately positive effect on the company's off-take interest.