Westwater Resources Announces First Off-Take Agreement for Sale of Graphite from its Kellyton Plant
05 Febbraio 2024 - 12:30PM
Business Wire
- Westwater contracts to supply natural purified graphite anode
material to SK On, a leading manufacturer of EV batteries, at its
plants in the U.S.
- Off-Take Agreement a critical element to obtaining financing
for construction of Kellyton Phase I
Westwater Resources, Inc. (NYSE: American: WWR), an
energy technology and battery-grade natural graphite company
(“Westwater Resources” or “Westwater”), today announced the
execution of its first off-take agreement with SK On Co., Ltd. (“SK
On” and such agreement, the “Off-Take Agreement”), a leading
electric vehicle (“EV”) battery manufacturer, supplying electric
vehicle batteries to Ford, Hyundai, Volkswagen and others.
Pursuant to the terms of the Off-Take Agreement, Westwater will
supply CSPG-10 natural graphite anode products (the “Product”) from
its Kellyton Graphite Plant located near Kellyton, Alabama to SK On
battery plants located within the U.S. Under the terms of the
Procurement Agreement, SK On will be obligated to purchase, on an
annual basis, a quantity of Product equal to a percentage of the
forecasted volume required by SK On (the “Minimum Purchase
Amount”), provided that the Minimum Purchase Amount may be
increased from time to time by the mutual agreement of the parties.
The forecasted volume required by SK On in the final year of the
Off-Take Agreement is 10,000 mt of Product.
“The contract with SK On is another important step in advancing
Westwater’s graphite business. We are excited to partner with a
leading global manufacturer of EV batteries and assist SK On to
further establish its U.S.-based supply chain. This agreement is
also a critically important step to securing the additional
financing needed to complete construction of Phase I of our
Kellyton Graphite Plant,” said Terence Cryan, Westwater’s Executive
Chairman.
Frank Bakker, Westwater’s President & CEO, added, “This is
the first off-take agreement for Westwater, and the Company is
actively negotiating additional off-take agreements with other
customers. We believe the contract with SK On is also the first
agreement for the supply of CSPG between a South Korean EV battery
manufacturer and a U.S. natural purified graphite producer. Our
technical and commercial teams have worked very hard to complete
the necessary steps to achieve this important milestone. We believe
that Westwater is well positioned as one of the first U.S.-based
suppliers of natural purified graphite for companies seeking an
IRA-compliant source by 2025.”
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 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.
About SK On
SK On is a global leading electric vehicle battery developer,
manufacturer, and solutions provider whose mission is to make our
world a cleaner and more convenient place as an electrification
linchpin. SK On was launched as an independent company in October
2021 after SK Innovation, South Korea’s largest energy company,
decided to split off its battery business unit. SK On aims to
become a world leader in the clean energy industry by leveraging
its global production base and R&D capabilities, as well as its
production and quality management know-how. SK On is a 50/50 joint
venture partner together with Ford Motor Company in BlueOval
SK.
Headquartered in Seoul, South Korea, SK On has a worldwide
presence with battery plants currently operating or in construction
across the United States, Europe, and Asia.
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 “will,” “can be,”
“expected,” and other similar words. Forward-looking statements in
this release include, among other things, statements concerning
Westwater’s future sales of CSPG products to SK On, including the
amounts, timing, and types of products included within those sales,
and Westwater’s expectations with respect to the Off-Take
Agreement. 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, 2022, and subsequent securities
filings.
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version on businesswire.com: https://www.businesswire.com/news/home/20240204550608/en/
Westwater Resources, Inc. Email:
Info@WestwaterResources.net
Investor Relations Email:
Investorrelations@westwaterresources.net
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