US-based Westwater Resources is making strides in the domestic battery-grade graphite industry with its Kellyton processing plant in Alabama. The company’s executive chairman, Terence Cryan, revealed that battery manufacturers and OEMs are willing to pay a premium for IRA-compliant domestic material, as evidenced by the offtake agreement with South Korean EV battery manufacturer SK On.
With the US currently relying on China for all anode material used in lithium-ion batteries, Westwater’s efforts to establish a North American battery-grade graphite business are crucial. Cryan highlighted the environmental benefits of their practices compared to Chinese companies, who use hydrofluoric acid in the production process.
The recent US government tariffs on Chinese EVs and natural graphite imports are seen as a boon for the US-based natural graphite industry, aiding in the competition with the Chinese monopoly. Westwater’s chief commercial officer, Jon Jacobs, expressed confidence in their value proposition as they seek additional customers.
While these tariffs may not heavily impact Chinese EV manufacturers, they mark a significant step towards creating a more balanced supply chain for critical materials like graphite. Fastmarkets’ assessments of graphite prices show a spread between Chinese and European prices, influenced by market developments like rising freight rates and geopolitical factors.
Overall, Westwater’s efforts signify a shift towards sustainability and domestic production in the battery-grade graphite industry, aligning with the increasing demand for environmentally responsible supply chains from battery manufacturers and OEMs.
