Westwater Resources Inc., an energy technology company specializing in battery-grade natural graphite, announced rising demand for its natural graphite anode material following the implementation of new global tariffs. The company’s Kellyton Graphite Plant in Alabama is positioned to benefit significantly as electric vehicle manufacturers and battery producers seek domestic sources to avoid steep import costs.

Globally, most natural graphite anode material—used primarily in electric vehicle batteries—is imported from China. However, recent tariff changes have dramatically altered the market landscape. The current U.S. import tariff on Chinese-sourced natural graphite anode material stands at 170 percent. While certain types of natural graphite used in other applications have received partial tariff exemptions, the battery-grade version, known as coated spherical processed graphite (CSPG), remains subject to full tariff rates.

Moreover, CSPG shipments from countries such as Indonesia, South Korea and Japan are now also subject to new tariffs, further tightening the global supply chain. These sweeping trade measures are part of broader efforts by the U.S. government to close loopholes in the Inflation Reduction Act, which have been targeted through a series of executive orders and policy interpretations in recent years.

Jon Jacobs, chief commercial officer at Westwater, said the impact of the tariffs has been immediate and significant for the company.

“The recent import tariffs on CSPG are a game-changer for Westwater,” Jacobs said. “Although tariffs may shift by country over time, we believe that tariffs on natural graphite anode material produced outside the U.S. are here to stay. As a result, one of the best strategies for American automakers and battery manufacturers to completely sidestep these added costs is to source CSPG domestically from producers like Westwater.”

Jacobs noted a marked uptick in customer interest, particularly in off-take agreements for CSPG to be produced at the Kellyton plant.

The increased attention comes as U.S. companies scramble to secure stable, tariff-free supply chains in response to rising global trade restrictions and growing demand for electric vehicles. Westwater’s Kellyton facility, located in Alabama, is designed to meet these emerging needs by offering a domestic, reliable source of high-quality graphite anode material.

With the CSPG market undergoing rapid transformation, industry analysts expect domestic suppliers like Westwater to play a pivotal role in helping the U.S. battery sector navigate trade volatility while supporting long-term electrification goals.

Westwater Resources is an energy technology company specializing in the development of battery-grade natural graphite. The company’s flagship project is the Kellyton Graphite Processing Plant, currently under construction in east-central Alabama. Additionally, Westwater owns the Coosa Graphite Deposit, the largest and most advanced natural flake graphite deposit in the contiguous United States. The deposit spans approximately 41,965 acres (about 17,000 hectares) in Coosa County, Alabama.