Westwater Resources, Inc., a company specializing in energy technology and the development of battery-grade natural graphite, has announced that it expects to close a debt financing deal in January 2025 to fund the remaining construction costs of its Kellyton Graphite Plant in Alabama. This financing is a crucial step for the company as it moves toward completing the plant, which will serve as a key facility in meeting the increasing demand for battery-grade graphite used in electric vehicle (EV) batteries and other energy storage solutions. The plant is expected to play a pivotal role in Westwater’s strategy to become a leader in the supply of materials essential to the transition to a greener economy.

Throughout the fourth quarter, Westwater has been diligently advancing through the various stages of due diligence and loan documentation processes related to this financing. As part of these efforts, the company has hosted lenders at the Kellyton site, providing them with a firsthand look at the facility and its ongoing construction. This site visit was part of the company’s strategy to build trust and transparency with potential lenders. In addition to the site visit, Westwater engaged an independent third-party engineering firm to complete technical due diligence, ensuring that the project meets the necessary engineering and operational standards. Furthermore, the company has successfully completed legal and insurance due diligence to confirm that all regulatory, insurance, and legal requirements are satisfied.

Westwater has also worked closely with legal counsel to review and finalize the loan documents, which are essential to securing the debt financing. Steve Cates, Senior Vice President of Finance and Chief Financial Officer at Westwater, highlighted the significance of the diligence process, especially given the unique nature of the Kellyton Graphite Plant. He noted, “Being the first of its kind facility, the diligence performed regarding our Kellyton Graphite Plant has understandably been substantial.” Cates expressed confidence that the financing will close in January 2025, noting that while the transaction is progressing smoothly, it is still subject to the customary agreement on final terms, completion of final due diligence, and fulfillment of loan conditions.

The closing of the debt financing will provide Westwater with the capital necessary to complete the construction of the Kellyton facility. This is particularly important as the global demand for battery-grade graphite is rapidly increasing, driven by the growth of the electric vehicle market. The company’s ability to secure the financing will be a critical factor in its ability to scale its operations and meet this growing demand.

Westwater Resources is positioning itself as a key player in the energy materials sector, focusing on providing high-quality graphite for batteries, which are essential to powering the transition to renewable energy. The completion of the Kellyton plant will represent a significant milestone in Westwater's efforts to establish a sustainable supply of materials critical for the global energy transition.