A Letter to our Shareholders from Chris Jones, President and CEO
WESTWATER GOES ALL IN ON GRAPHITE
On September 8, 2020 we announced that we had reached an agreement to sell our uranium business so that we could devote all of our available resources to the development of our graphite business and the Coosa Graphite Project. This major step forward is important to the Company and its shareholders – and with it comes focus on a plan to produce battery grade graphite by the end of 2022 and cash flow to Westwater.
But why graphite?
Graphite is an important material necessary for modern life – it’s in your smartphone, your laptop, your car and your smoke detectors and flashlights. It is what makes lithium ion batteries work – and provides performance enhancements for all other types of batteries.
The battery graphite market is growing quickly. This is, in part, due to the electrification of our transportation network (cars and buses), proliferation of smartphones and other electronic devices, and the growing need for large electrical storage systems that help make renewable power more efficient and affordable. This growth is worldwide, and there is very little battery graphite produced outside of China.
Westwater’s Coosa Graphite Project is in Alabama – where we control over 40,000 acres of mineral leases and a graphite deposit with over 27 years of life. We plan to permit, develop and operate the mine beginning in 2028, but we don’t need to wait for the mine to be built. We plan to build the graphite processing facilities in 2021/2022 and start up on purchased non-Chinese feedstock and make graphite products for all battery types.
Our geographic advantage allows us to serve US domestic markets with US manufactured battery materials – helping battery manufacturers diversify their source materials and reduce risk. As well, producing these products in the US ensures that we maintain an environmental footprint that is lighter, more transparent and safer for our employees and the communities where we work. We have developed a proprietary process, for which we have applied for a patent, that purifies our graphite effectively and maintains this safety ethic.
This is an exciting time for Westwater. Watch us as we operate our pilot plant this year and produce our products in quantity for prospective customer testing. We plan to follow this effort with a feasibility study – then construction of the commercial sized plant. We plan to have this plant commissioned before the end of 2022 (that is just over two years from now!).
Please feel free to explore our website. We have a detailed business plan and more information on our products and the Coosa Graphite Project.
Christopher M. Jones
President & CEO
Westwater Resources, Inc.